Highmark Medicare Services, Inc., Claimed Some Unallowable Medicare Postretirement Benefit Costs for Fiscal Years 2003 Through 2009

Highmark Medicare Services, Inc. (Highmark), a Centers for Medicare & Medicaid Services contractor, claimed $1.4 million of unallowable Medicare postretirement benefit (PRB) costs for reimbursement during fiscal years (FYs) 2003 through 2009. Highmark claimed these unallowable Medicare PRB costs primarily because it incorrectly calculated the assignable PRB costs for this period.

We recommended that Highmark revise its Final Administrative Cost Proposals for FYs 2003 through 2009 to reduce its claimed Medicare PRB costs by approximately $1.4 million. Highmark did not directly address our recommendation. However, Highmark's comments suggest that it did not agree with our recommendation to reduce its claimed Medicare PRB costs by approximately $1.4 million.