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Audit of the Post Retirement Benefit Costs Claimed by Wellmark, Inc.

Issued on  | Posted on  | Report number: A-07-02-03035

Report Materials

EXECUTIVE SUMMARY:

The purpose of this review was to determine the allowability of $717,106 in post retirement benefit (PRB) costs claimed for Medicare reimbursement by Wellmark, Inc. (Wellmark).  The $717,106 represents PRB costs that will be incurred subsequent to the termination of Wellmark's Medicare contract.  The review showed that the claimed costs are unallowable for Medicare reimbursement and we recommend that Wellmark withdraw the claim.  Wellmark disagreed with our report, asserting that the application of prior unclaimed administrative costs (approximately $1.8 million) offsets our recommendation to withdraw the claim for PRB costs.

Report Type
Audit
HHS Agencies
Centers for Medicare and Medicaid Services
Issue Areas
-
Target Groups
-
Financial Groups
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Notice

This report may be subject to section 5274 of the National Defense Authorization Act Fiscal Year 2023, 117 Pub. L. 263.