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Department of Health and Human Services

Office of Inspector General -- AUDIT

"Audit of Medicare Administrative Costs Claimed Under Medicare Part B for Empire Blue Cross Blue Shield," (A-02-92-01028)

September 24, 1992

Complete Text of Report is available in PDF format (1.12 MB). Copies can also be obtained by contacting the Office of Public Affairs at 202-619-1343.


Empire Blue Cross Blue Shield (Empire) contracts with the Health Care Financing Administration to serve as a Medicare Part B carrier in New York State. During the period of our audit, October 1, 1984 through September 30, 1989, Empire processed approximately 94 million claims, paid about $7 billion in Part B benefits, and claimed around $216 million in administrative costs. We determined that $2,533,711 of the $216,562,200 administrative costs claimed by Empire were unallowable.