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Federal Compensation: Recovery of Improper Health Benefits Charges Needed

GGD-89-27 Published: Dec 13, 1988. Publicly Released: Dec 13, 1988.
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Highlights

GAO reviewed certain aspects of the Federal Employees Health Benefits Program (FEHBP) to determine the reasonableness of the administrative costs that carriers basing their premiums on claims experience charged FEHBP.

Recommendations

Recommendations for Executive Action

Agency Affected Recommendation Status
Office of Personnel Management In order to hold the loss of investment income to a minimum, OPM should take action to recover the improper charges now rather than waiting until the next scheduled audit.
Closed – Implemented
OPM requested AETNA to refund charges in dispate and AETNA did so.

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Topics

Administrative costsAuditing proceduresContractor paymentsEmployee medical benefitsHealth insurance cost controlIncome taxesInsurance premiumsNoncomplianceRetirement benefitsHealth benefits