Administrative Costs Projected by Windsor Health Plan of TN for Calendar Year 2007

EXECUTIVE SUMMARY:

Our objective was to determine whether Windsor Health Plan of TN, Inc.'s (Windsor) anticipated administrative costs were actuarially supported and reasonably and equitably reflected revenue requirements in accordance with Federal regulations.  Bid summary forms submitted by Windsor contained revenue estimates, including administrative costs, required for each plan.  Windsor projected $24,517,598 in administrative costs for calendar year 2007 that were actuarially supported and reasonably and equitably reflected revenue requirements in accordance with Federal regulations.  Therefore, we did not make any recommendations.