U.S. flag

An official website of the United States government

Dot gov

The .gov means it's official.
Federal government websites often end in .gov or .mil. Before sharing sensitive information, make sure you're on a federal government site.


The site is secure.
The https:// ensures that you are connecting to the official website and that any information you provide is encrypted and transmitted securely.

Skip to Content

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.