Review of Pension Costs Claimed for Medicare Reimbursement by Blue Cross and Blue Shield of Florida

This report provides the results of our review of Pension Costs Claimed for Medicare Reimbursement by Blue Cross and Blue Shield of Florida (Florida). For 1992 and 1993, we determined that Florida has not claimed $216,113 in pension costs that are allowable for Medicare reimbursement. During this period, the allowable Medicare pension costs were $2,808,784. However, Florida claimed pension costs of $2,592,671 for Medicare reimbursement. As a result, Florida has not claimed $216,113 in allowable CAS pension costs. The under claim occurred primarily because Florida based its claims on estimated pension costs as computed by their consulting actuary. We recommended Florida revise its Final Administrative Cost Proposals (FACPs) to claim the remaining allowable pension costs.