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Department of Health and Human Services

Office of Inspector General -- AUDIT

"Audit of Administrative Costs Claimed Under Parts A and B of the Health Insurance for the Aged and Disabled Program by Associated Insurance Companies, Inc.," (A-05-93-00054)

October 4, 1993


Complete Text of Report is available in PDF format (5.92 mb). Copies can also be obtained by contacting the Office of Public Affairs at 202-619-1343.

EXECUTIVE SUMMARY:

This final audit report, prepared by Sheffield, Dallmann and Haley, Ltd., under contract with the Office of Inspector General, provides the results of an audit of Medicare Part A and Part B administrative costs totaling approximately $67.4 million claimed by Associated Insurance Companies, Inc. (contractor) for Fiscal Years ended September 30, 1987 through 1989. The report points out that about $3.8 million of the claimed costs were unallowable. Also, the auditors point out that the contractor failed to claim about $0.4 million to which it was entitled. The auditors recommended financial adjustments and procedural improvements to correct the weaknesses noted.