Review of Pension Costs Claimed by CareFirst

The purpose of this review was to determine the allowability of pension costs claimed for Medicare reimbursement for fiscal years (FYs) 1992 through 2001.   For FYs 1992 through 2001, we determined that CareFirst of Maryland (CareFirst) underclaimed allowable Medicare pension costs.  During this period, the allowable Medicare pension costs were $589,413.  However, CareFirst claimed pension costs of $476,229 for Medicare reimbursement.  As a result, CareFirst did not claim $113,184 of allowable pension costs.   We recommended that CareFirst revise its Final Administrative Cost Proposals for FYs1992 through 2001 to claim additional allowable pension costs of $113,184.