Review of the Pension Segmentation Requirements for the EmblemHealth Services Company, LLC, Employees' Retirement Plan at Group Health Incorporated for the Period of January 1, 2008 to January 1, 2009

摘要

Group Health Incorporated (GHI), an EmblemHealth Company, administered Medicare Part B operations under cost reimbursement contracts with the Centers for Medicare & Medicaid Services (CMS). These contracts terminated on July 18, 2008, but GHI continues to administer Medicare operations under a Coordination of Benefits contract with CMS. During our audit period, GHI had three defined benefit pension plans: the GHI Local 153 Pension Plan; the GHI Cash Balance Pension Plan; and the EmblemHealth Services Company, LLC, Employees Retirement Plan. This report will address the pension assets for the EmblemHealth Services Company, LLC, Employees Retirement Plan only. Since its inception, Medicare has paid a portion of contractors contributions to their pension plans. These contributions are allowable Medicare costs subject to the criteria set forth in the Federal Acquisition Regulation, Cost Accounting Standards (CAS), and Medicare contracts.