Department of Health and Human Services

Office of Inspector General -- AUDIT

"Audit of the Pension Plan at a Terminated Medicare Contractor, Horizon Blue Cross Blue Shield of New Jersey," (A-07-02-03028)

March 11, 2004


Complete Text of Report is available in PDF format (1.06 mb). Copies can also be obtained by contacting the Office of Public Affairs at 202-619-1343.


EXECUTIVE SUMMARY:

Horizon was a Medicare contractor until its contract was terminated in 2000.  Because Medicare contracts specifically prohibit contractors from profiting from Medicare activities, pension gains which exist when a Medicare segment closes must be credited back to the program.  Accordingly, we recommended that Horizon remit $3,812,504 in excess pension assets to the Medicare program.