Review of Postretirement Benefit Costs Claimed for Blue Cross Blue Shield of South Carolina for Fiscal Years 2000 Through 2004

The objective of our review was to determine the allowability of South Carolina's post retirement benefit (PRB) costs claimed for Medicare reimbursement for fiscal years (FY) 2000 through 2004.  We found that South Carolina underclaimed $180,720 of accrued PRB costs for Medicare reimbursement for FYs 2000 through 2004.  We recommended that South Carolina revise its Final Administrative Cost Proposals for FYs 2000 through 2004 to increase its claimed PRB costs by $180,720and claim future PRB costs in accordance with the Medicare contract.  South Carolina did not completely concur with our recommendations.