Review of Pension Costs Claimed for Medicare Reimbursement by Blue Cross Blue Shield of Wyoming for Fiscal Years 1986 Through 2007

Blue Cross Blue Shield of Wyoming (Wyoming), a Centers for Medicare & Medicaid Services (CMS) contractor, underclaimed $41,000 of Medicare pension costs on its Final Administrative Cost Proposals (FACP) for fiscal years (FY) 1986 through 2007.  Wyoming administered Medicare Part A operations under cost reimbursement contracts with CMS until the contractual relationship was terminated October 31, 2006.

We recommended that Wyoming revise its FACPs for FYs 1986 through 2007 to claim the additional allowable Cost Accounting Standards (CAS) pension costs of $41,000.  Wyoming concurred with our finding and stated that it will revise its FACPs to claim the additional allowable CAS pension costs.