ASBCA Grants Summary Judgment in Favor of FEHBP Contractor on Audit Disallowance
Client Alert | 1 min read | 10.30.03
On October 29, 2003, the Armed Services Board of Contract Appeals granted partial summary judgment against the Office of Personnel Management's disallowance as an unallowable premium tax of Anthem Blue Cross Blue Shield's Ohio franchise taxes paid in years 1991 through 1995 and charged to an FEHBP contract. Blue Cross & Blue Shield Association, ASBCA No. 53632 (Oct. 29, 2003). Following a draft OPM OIG audit that questioned Anthem's method of allocating Ohio franchise taxes, the parties entered into a series of waivers extending the five-year limitations period for the issuance of a decision contained in the contract's Audit Disputes clause. The Board determined that the waiver did not preserve OPM's claim for years 1991 through 1993 because the waivers only addressed the allocability of the franchise taxes as raised in the draft audit report (an issue which BCBSA no longer disputes). OPM's challenge to the allowability of the franchise taxes was raised for the first time when the final audit report was issued in June 1999. The Board reasoned that "[a]llocability is not synonymous with allowability; it is merely one factor to be considered in determining allowability." Accordingly, the Board concluded that the waivers did not extend to the allowability of the franchise taxes, and OPM's claims related to the franchise taxes paid in years 1991 through 1993 were time-barred. The Board also denied OPM's motion for summary judgment that the Ohio franchise tax is an unallowable tax imposed directly or indirectly on premiums.
See full decision
Insights
Client Alert | 4 min read | 04.18.24
Following federal lawmakers’ initiative to lower prescription drug prices under the Inflation Reduction Act of 2022, several states have taken similar steps to limit certain drugs’ prices. Drug affordability for consumers is a top priority for federal and state lawmakers and regulators because it is a bipartisan issue that directly impacts consumers’ wallets. With negotiations between the federal government and drug manufacturers over 10 drugs’ prices for Medicare beneficiaries well underway under the Inflation Reduction Act, 11 states, including Maryland and Colorado, have created drug affordability review boards to more directly tackle rising prices for both brand and generic drugs.[1] And another 12 states have pending legislation to create these boards.[2]
Client Alert | 6 min read | 04.16.24
Navigating the AI Intellectual Property Maze - Key Points From Congressional Hearing
Client Alert | 5 min read | 04.15.24
Making the EU Courts More Efficient for Trade-Related Decisions
Client Alert | 1 min read | 04.15.24
New FAR Part 40 to Address Supply Chain and Information Security Requirements
