Review of Pension Costs Claimed for Medicare Reimbursement by Blue Cross Blue Shield of Utah for Fiscal Years 1987 Through 1997

EXECUTIVE SUMMARY:

The objective of our review was to determine the allowability of pension costs claimed for Medicare reimbursement for fiscal years (FY) 1987 through 1997.  We found that Utah did not claim all pension costs that were allowable for Medicare reimbursement for FYs 1987 through 1997 because it did not claim pension costs in accordance with its Medicare contracts.  Therefore, Utah underclaimed $756,509 of allowable pension costs.   We recommended that Utah revise its Final Administrative Cost Proposals (FACP) to claim allowable CAS pension costs of $756,509 for FYs 1987 through 1997.  Utah concurred with our recommendation.