Federal Reports

Wisconsin Physicians Service Insurance Corporation claimed $4.8 million in unallowable administrative costs on its Medicare Part B final administrative cost proposals for fiscal years 2009, 2010, and 2011.

Wisconsin Physicians Service Insurance Corporation claimed $4.4 million in unallowable administrative costs on its Medicare Part B final administrative cost proposals for fiscal years 2009, 2010, and 2011.

We found that the expenditures that the Vermont Agency of Human Services (State agency) reported in the Indian Health Service (IHS) facilities' column of the Form CMS-64 were for primary care services not provided in an IHS facility. However, like services provided in IHS facilities, these primary care services had a Federal medical assistance percentage reimbursement rate of 100 percent. The State agency had obtained CMS approval to report these expenditures in the IHS facilities column. Because Federal reimbursement was correct, this report does not include any recommendations.

As part of our annual audit plan, the OIG audited costs billed to the Tennessee Valley Authority (TVA) by VECTOR. VECTOR is a joint venture between Bechtel Power Corporation and Sargent & Lundy, L.L.C. (S&L) that provided engineering services for Bellefonte Nuclear Plant Unit 1. Our objective was to determine if the $26.8 million in S&L costs paid by TVA from October 1, 2010, through December 31, 2012, were in accordance with the contract terms and conditions. In summary, we determined VECTOR overbilled TVA $322,535 for S&L's services. The overbilled costs included (1) $236,224 in excessive labor markup costs, (2) $50,685 in ineligible temporary living allowance and travel costs, (3) $14,171 in other ineligible costs, and (4) $21,455 in unsupported costs.(Summary Only)