Review of Pension Costs Claimed for Medicare Reimbursement by Blue Cross Blue Shield of Georgia for Fiscal Years 1994 Through 2000

The objective of our review was to determine the allowability of pension costs that Blue Cross Blue Shield of Georgia (Georgia) claimed for Medicare reimbursement for fiscal years (FY) 1994 through 2000.  Georgia did not claim $25,889 of allowable pension costs for FYs 1994 through 2000 due to incorrect computations of CAS pension costs.  Georgia claimed $1,012,072 of pension costs for Medicare reimbursement; however, allowable Medicare pension costs were $1,037,961.

We recommended that Georgia revise its Final Administrative Cost Proposals to increase claimed pension costs by $25,889.  We also recommended that Georgia claim future pension costs in accordance with Federal requirements and its Medicare contract.  Georgia concurred with our recommendations.