The Health Plan accurately reported $49.2 million of its $60.6 million administrative and quality improvement expenses.
The remaining $11.4 million in expenses represented those shared with its parent company. However, those shared expenses were not always allowable.
Specifically, the Health Plan reported shared expenses that were not allowed under the Health and Human Services Commission’s (Commission’s)
cost principles, including expenses that exclusively benefited the Health Plan’s affiliate providers.
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