Review of Medicare Northwest Data Center Claims Processing Costs for Fiscal Year 2000

EXECUTIVE SUMMARY:

The objective of this audit was to determine whether Medicare Northwest's data center costs represented reasonable and allowable costs in conformity with the reimbursement principles contained in the Federal Acquisition Regulation and the conditions set forth in the Inter-Plan Operating Agreements between Medicare Northwest and other Medicare contractors who utilized the services of the data center.  Based on our review, we concluded that the $4,306,787 of data center costs billed to other Medicare contractors for fiscal year 2000 was reasonable and allowable.