Government Audit Insider: CIGNA submitted unallowable claims
Healthcare Auditing Weekly, February 5, 2007
The OIG reviewed pension costs claimed by CIGNA for Medicare reimbursement between 1991 and 2004 as part of an audit.
CIGNA administers Medicare Part B and DME operations under cost reimbursement contracts with CMS and claims reimbursement for its Medicare employees' pension costs. Regulations and the Medicare contracts provide guidance for claiming pension costs.
The OIG found that CIGNA claimed more than $3.1 million of unallowable pension costs because it did not claim pension costs in accordance with the Medicare contracts.
The OIG recommended that CIGNA revise its cost proposals to reduce claimed pension costs by $3.1 million. The agency also recommended that CIGNA claim future pension costs in accordance with Medicare contracts. CIGNA disagreed in part with the agency's original recommendation to reduce claimed pension costs by $3.1 million, but agreed that its claimed pension costs should be reduced. CIGNA also agreed to claim future pension costs in accordance with the Medicare contracts. After reviewing CIGNA's comments, the OIG revised its calculations and the related recommendation to reduce claimed pension costs.
Click here to review the audit.
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