Skip to main content
U.S. flag

An official website of the United States government

Official websites use .gov
A .gov website belongs to an official government organization in the United States.

Secure .gov websites use HTTPS
A lock ( ) or https:// means you’ve safely connected to the .gov website. Share sensitive information only on official, secure websites.

Beta This is a new resource

Series: Contractor Postretirement Benefits and Supplemental Employee Retirement Plan Costs

Announced on  | Last Modified on  | Series Number: SRS-A-25-032
Status
Active
Agency
Centers for Medicare and Medicaid Services

OBJECTIVE

Centers for Medicare & Medicaid Services reimburses a portion of its contractors' postretirement health benefits costs and the supplemental employee retirement plans costs. The reimbursement is determined by the cost reimbursement principles contained in the FAR, Cost Accounting Standards as required by the Medicare contracts. We will review the postretirement health benefit costs and the supplemental employee retirement plans of Medicare contractors to determine the allowability, allocability, and reasonableness of the benefits and plans, as well as the costs charged to Medicare contracts. Criteria are in the FAR at 48 CFR §§ 31.201 through 31.205.

There are 5 projects in this series.

Project titles will remain unpublished until projects are complete and reports are posted.

ACTIVE PROJECTS IN THIS SERIES (3)

Project OAS-25-07-118 • Announced on Feb 1, 2024

Project OAS-25-07-134 • Announced on Feb 1, 2024

Project OAS-25-07-135 • Announced on Feb 1, 2024

COMPLETED PROJECTS IN THIS SERIES (2)

Companion Data Services, LLC

Project A-07-24-00641 • Completed on August 18, 2025

Palmetto Government Benefits Administrator, LLC.

Project A-07-24-00640 • Completed on August 14, 2025

TIMELINE

  • February 1, 2024
    Series Number SRS-A-25-032 Assigned
  • February 1, 2024
    Projects Announced

    Palmetto Government Benefits Administrator, LLC. - A-07-24-00640

  • Companion Data Services, LLC - A-07-24-00641

  • Project OAS-25-07-118

  • Project OAS-25-07-134

  • Project OAS-25-07-135

  • August 14, 2025
    Project Complete - A-07-24-00640

    Palmetto Government Benefits Administrator, LLC. has been marked as complete. This audit resulted in 1 recommendation.

  • August 18, 2025
    Project Complete - A-07-24-00641

    Companion Data Services, LLC has been marked as complete. This audit resulted in 1 recommendation.

  • Today
    3 Audits In-Progress
  • Est FY2026
    Estimated Fiscal Year for Series Completion

2 REPORT PUBLISHED

Palmetto Government Benefits Administrator, LLC, Claimed Some Unallowable Medicare Postretirement Benefit Costs Through Its Incurred Cost Proposal (A-07-24-00640)

Palmetto claimed PRB costs of $101,518 for Medicare reimbursement, through its ICP, for CY 2017; however, we determined that the allowable PRB costs during this period were $92,349. The difference, $9,169, represented unallowable Medicare PRB costs that Palmetto claimed on its ICP for CY 2017.

Palmetto claimed these unallowable Medicare PRB costs primarily because it used incorrect indirect cost rates when claiming those costs for Medicare reimbursement.

25-A-07-098.01 to CMS - Open Unimplemented
Update expected on 02/13/2026
We recommend that Palmetto Government Benefits Administrator, LLC, work with CMS to ensure that its final settlement of contract costs reflects a decrease in Medicare PRB costs of $9,169 for CY 2017.

View in Recommendation Tracker

Companion Data Services, LLC, Claimed Some Unallowable Medicare Postretirement Benefit Costs Through Its Incurred Cost Proposals (A-07-24-00641)
  • CDS claimed PRB costs of $11,101 for Medicare reimbursement, through its ICPs, for CY 2017; however, we determined that the allowable PRB costs during this period were $10,221. The difference, $880, represented unallowable Medicare PRB costs that CDS claimed on its ICPs for CY 2017.
  • CDS claimed these unallowable Medicare PRB costs primarily because it used incorrect indirect cost rates when claiming those costs for Medicare reimbursement.

25-A-07-106.01 to CMS - Open Unimplemented
Update expected on 02/17/2026
We recommend that Companion Data Services, LLC, work with CMS to ensure that its final settlement of contract costs reflects a decrease in Medicare PRB costs of $880 for CY 2017.

View in Recommendation Tracker
Work Plan Type
Office of Audit Services
HHS Agencies
Centers for Medicare and Medicaid Services
Issue Areas
Contracts Financial Stewardship
Target Groups
Elderly
Financial Groups
Medicare A Medicare B