EXECUTIVE SUMMARY:
This audit report presents the results of an Office of Inspector General (OIG) review of administrative costs claimed by Independence Blue Cross (IBC) for the administration of the Medicare Part A program for Fiscal Years (FYs) 1996 and 1997 (October 1, 1995 - September 30, 1997). During this period, IBC booked and claimed a total of $24,610,539 in Medicare administrative costs. We found that IBC claimed $4,644,602 in questioned costs including $4,146,905 in excess costs claimed over approved budgets and $497,697 in unfunded transition costs. We did not make any procedural recommendations since IBC opted to discontinue the Medicare Part A program. We recommended that IBC coordinate with CMS to reduce the costs claimed by $4,644,602.