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Department of Health and Human Services

Office of Inspector General -- AUDIT

"Audit of Medicare Administrative Costs Incurred Under Part A and B for Arkansas and Part B for Louisiana," (A-06-92-00071)

August 7, 1992


Complete Text of Report is available in PDF format (4.16 MB). Copies can also be obtained by contacting the Office of Public Affairs at 202-619-1343.

EXECUTIVE SUMMARY:

This final report presents the results of our audit of Medicare administrative costs incurred by Arkansas Blue Cross and Blue Shield, Inc. (the Plan). The Plan is the intermediary/carrier for the State of Arkansas and the Carrier for the State of Louisiana. For Arkansas, the Plan reported Medicare administrative costs of $6,706,232 for Part A and $14,216,931 for Part B. For Louisiana, the Plan reported Medicare administrative costs of $35,462,194 for Part B. Our recommended audit adjustments reduce reported costs by $1,441,937 ($222,176 for Part A and $645,087 for Part B of Arkansas and $574,674 for Part B of Louisiana).