Review of Administrative Costs - Medicare Parts A and B - Aetna Life Insurance Company

EXECUTIVE SUMMARY:

This final audit report covers administrative costs claimed by the Aetna Life Insurance Company for administering Part A and Part B of the Medicare program for fiscal years 1995 through 1997. Administrative costs reported for the above period totaled approximately $323 million. The final report points out unallowable costs of and recommends financial adjustments for $2.9 million. The Aetna agreed to the financial adjustment for $2.9 million.

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