Review of Blue Cross Blue Shield Association's Final Administrative Cost Proposal for Fiscal Year 2008

Of the $4.4 million administrative costs that Blue Cross Blue Shield Association's claimed on its Final Administrative Cost Proposal for fiscal year 2008, $4.3 million was allowable, allocable, and reasonable in accordance with the Federal Acquisition Regulation and the Medicare contract. The remaining $120,000 represents postretirement benefits that we did not review and that are the subject of a separate review.