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Department of Health and Human Services

Office of Inspector General -- AUDIT

"Review of Subsidiary Administrative Costs Claimed Under Parts A and B of the Health Insurance Program for the Aged and Disabled by Blue Cross and Blue Shield of Michigan," (A-05-93-00057)

July 9, 1993

Complete Text of Report is available in PDF format (5.38 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 and Blue Shield of Michigan (BCBSM) charged unallowable costs totaling $1.4 million to Medicare over a 7-year period ending September 30, 1987. The unallowable charges consisted primarily of profits related to BCBSM's three subsidiaries. We recommended a financial adjustment for $1.4 million. Regional Health Care Financing Administration and BCBSM officials concurred with the recommendation.