Review of Supplemental Executive Retirement Plan Costs Claimed For Medicare Reimbursement By Blue Cross Blue Shield of Montana For Fiscal Years 1994 through 2007

摘要

Blue Cross Blue Shield of Montana (Montana) administered Medicare Part A and Part B operations under cost reimbursement contracts with the Centers for Medicare & Medicaid Services (CMS) until the contractual relationship was terminated November 30, 2006. Montana sponsors a Supplemental Executive Retirement Plan (SERP) which is maintained primarily to provide deferred compensation to a select group of management or highly compensated employees. The SERP is a nonqualified pension plan designed to restore benefits lost due to the Internal Revenue Code limits under the regular qualified plan. Montana claimed SERP costs for Federal reimbursement on a pay-as-you-go basis.