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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 - Independence Blue Cross," (A-03-91-02000)

June 17, 1993

Complete Text of Report is available in PDF format (1.75 MB). Copies can also be obtained by contacting the Office of Public Affairs at 202-619-1343.


This final audit report points that Independence Blue Cross (IBC) claimed approximately $1.7 million in unallowable costs for the 3-year period ended September 30, 1989. The unallowable costs consisted of expenditures in excess of budgeted amounts, costs of nonapproved investment projects, and credits due, but not made, to the Medicare line of business. In addition to financial adjustments, we recommended procedural improvements. Health Care Financing Administration officials generally concurred with our recommendations.