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Department of Health and Human Services

Office of Inspector General -- AUDIT

"Report on Medicare Part B Administrative Costs at Pennsylvania Blue Shield," (A-03-92-00035)

January 14, 1994

Complete Text of Report is available in PDF format (1.1 MB). Copies can also be obtained by contacting the Office of Public Affairs at 202-619-1343.


This final audit report points out that the Pennsylvania Blue Shield (PBS) claimed unallowable costs totaling $1,128,698 in administering the Medicare Part B program. The unallowable costs included costs associated with PBS' private lines of business, entertainment, contributions, a bid proposal, and other activities not eligible for Medicare reimbursement. The PBS agreed to make procedural improvements and a financial adjustment for the above amount. Health Care Financing Administration officials generally agreed with the findings and recommendations.