Report Materials
EXECUTIVE SUMMARY:
The Transamerica Occidental Life Insurance Company (TOLIC) was a Medicare contractor until its contract was terminated in 2000 and, as such, was allowed to claim Medicare reimbursement for its Medicare employees' post retirement benefit (PRB) costs. However, regulations provide that, to be allowable, PRB costs must be funded by the time set for filing for Federal income tax return or any extension thereof. The PRB costs assigned to the current year, but not funded by the tax return time, are not allowable in any subsequent year. Since TOLIC's claims was based on unfunded costs, we recommended that TOLIC withdraw its claim of approximately $3.1 million for PRB costs.
Notice
This report may be subject to section 5274 of the National Defense Authorization Act Fiscal Year 2023, 117 Pub. L. 263.