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Recommendation Details
Text of Recommendation
We recommend that the Contracting Office either require the Plan to reimburse the FEHBP $3,177,807 for defective pricing, or provide sufficient documentation to support the rate build-up for the City of Cleveland’s PPO product’s rates in 2011 and 2012 so that the revenue neutrality resulting from the blending of the HMO and PPO rates can be validated.
Recommendation Number
1
Recommendation Questioned Costs
$3,177,807
Recommendation Funds for Better Use
$0