Audit of Blue Cross and Blue Shield of North Carolina's Claim for Post Retirment Benefit Costs to be

Page 2 – Wynethea Walker me or your staff may contact George M. Reeb, Assistant Inspector General for the Centers for Medicare & Medicaid Audits, at (410) 786-7104 or James P. Aasmundstad, Regional Inspector General for Audit Services, Region VII, at (816) 426-3591, ext. 225. Please refer to report number A-07-04-00162 in all correspondence. Attachment Page 2 – Mr. Christopher Woodfin Directly Reply to HHS Action Official: Ms. Rose Crum-Johnson Regional Administrator, Region IV Centers for Medicare & Medicaid Services Sam Nunn Atlanta Federal Center th4 Floor 61 Forsythe Street, SW Suite 4T20 Atlanta, Georgia 30303 Department of Health and Human Services OFFICE OF INSPECTOR GENERAL AUDIT OF BLUE CROSS AND BLUE SHIELD OF NORTH CAROLINA’S CLAIM FOR POST RETIREMENT BENEFIT COSTS TO BE INCURRED AFTER TERMINATION OF ITS MEDICARE CONTRACT AND CLOSING OF ITS MEDICARE SEGMENT JUNE 2004 A-07-04-00162 EXECUTIVE SUMMARY BACKGROUND Blue Cross and Blue Shield of North Carolina (North Carolina) administered Medicare Part A under cost reimbursement contracts until the contractual relationship terminated on October 31, 2001. In claiming costs, contractors were to follow cost reimbursement principles contained in Federal Acquisition Regulations (FAR), Cost Accounting Standards (CAS), and the Medicare contracts. FAR sets forth the allowability requirements and applicable methods of accounting for ...