Department of Health and Human Services

Office of Inspector General -- AUDIT

"Review of Blue Cross Blue Shield of Florida's Pension Segmentation Requirements for the Period January 1, 1994, to January 1, 2003," (A-07-04-00172)

February 8, 2005


Complete Text of Report is available in PDF format (285 kb). Copies can also be obtained by contacting the Office of Public Affairs at 202-619-1343.


EXECUTIVE SUMMARY:

The objectives of our review were to determine if Blue Cross Blue Shield of Florida (Florida):  (1) implemented our prior audit recommendation to increase Medicare segment assets by $813,122; and (2) complied with the Medicare contractís pension segmentation requirements while updating Medicare segment assets.  We found that Florida did not implement the prior audit recommendation and did not comply with the Medicare contractís pension segmentation requirements while updating Medicare segment assets.  Florida understated Medicare segment assets by $1,294,606.  We recommended that Florida increase the Medicare segment pension assets by $1,294,606, implement controls to ensure that audit recommendations are addressed, and implement controls to ensure that Medicare segment assets are updated in accordance with the Medicare contract.  Florida agreed with our report findings.