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Department of Health and Human Services

Office of Inspector General -- AUDIT

"Administrative Costs Claimed Under Part A of the Health Insurance for the Aged and Disabled Program - Blue Cross of Western Pennsylvania," (A-03-90-02003)

August 20, 1993

Complete Text of Report is available in PDF format (1.94 MB). Copies can also be obtained by contacting the Office of Public Affairs at 202-619-1343.


This final audit report points out that Blue Cross of Western Pennsylvania claimed approximately $2.2 million in unallowable costs for administering the Medicare Part A program. The unallowable costs consisted of: rental costs of $1,159,389 which were claimed but not incurred; costs of $347,178 for unspecified projects that were not approved by the Health Care Financing Administration (HCFA); credits totaling $687,640 that were due but not used to offset Medicare costs; and $24,321 that was misclassified or based on estimated rather than actual costs. We recommended financial adjustments and procedural improvements. Regional HCFA officials concurred with our findings and recommendations.