Review of Pension Costs Claimed for Medicare Reimbursement by Travelers Insurance Company

This final report provides the results of our review of Pension Costs Claimed for Medicare Reimbursement by Travelers Insurance Company. Our review showed that Travelers claimed $854,214 in pension costs that were not allowable. The over claim occurred primarily because Travelers incorrectly assigned contributions towards funding the qualified plan pension costs for the Medicare segment. We recommend Travelers revise its claim to eliminate the unallowable pension costs. Travelers agreed with our findings and recommendation.