Review of Pension Costs Claimed for Medicare Reimbursement by Wellmark, Inc.

EXECUTIVE SUMMARY:

The purpose of this review was to determine the allowability of pension costs claimed for Medicare reimbursement for Fiscal Years (FYs) 1992 through 2000.  For FYs 1992 through 2000, we determined that Wellmark, Inc. (Wellmark) over claimed Medicare pension costs.  During this period, the allowable Medicare pension costs were $2,726,878.  However, Wellmark claimed pension costs of $3,273,931 for Medicare reimbursement.  As a result, Wellmark over claimed pension costs by $547,053.  This over claim of pension costs was the result of Wellmark not basing their pension claims on separately calculated pension costs for the Medicare segment.  We recommended that Wellmark remit $547,053 to the Federal Government.