Review of Pension Costs Claimed for Medicare Reimbursement by CIGNA Government Services, LLC, for Fiscal Years 2005 Through 2007

摘要

During our audit period, CIGNA Government Services, LLC (CGS), administered Medicare Part B and durable medical equipment operations for Connecticut General Life Insurance Company (CGLIC), the legal entity that entered into these cost reimbursement contracts with the Centers for Medicare & Medicaid Services (CMS). CGS and CGLIC are wholly owned subsidiaries of CIGNA Corporation. CGS participates in a defined benefit pension plan, which is a deferred compensation plan in which an employer makes actuarially determined contributions to fund an employees retirement benefit as defined by the plans terms. CMS reimburses a portion of the annual contributions that contractors make to their pension plans. In claiming costs, contractors must follow cost reimbursement principles contained in the Federal Acquisition Regulation, Cost Accounting Standards (CAS), and Medicare contracts. Our objective was to determine the allowability of pension costs that CGS claimed for Medicare reimbursement for fiscal years (FY) 2005 through 2007.