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Department of Health and Human Services

Office of Inspector General -- AUDIT

"Review of Medicare Contractor's Pension Segmentation Requirements at Blue Cross Blue Shield of Arizona for the Period January 1, 1991, to January 1, 2005," (A-07-06-00207)

August 31, 2006

Complete Text of Report is available in PDF format (341 kb). Copies can also be obtained by contacting the Office of Public Affairs at 202-619-1343.


The objectives of our review were to determine if Arizona complied with the Medicare contracts’ pension segmentation requirements while: (1) implementing the prior audit findings, and (2)  updating the Medicare segment’s assets from January 1, 1991, to January 1, 2005.  We found that Arizona did not correctly adjust the beginning market value of assets or comply with the Medicare contract’s pension segmentation requirements when updating the segment’s assets from January 1, 1991, to January 1, 2005.  As a result, Arizona overstated the January 1, 2005, Medicare segment assets by $6,070.  We recommended that Arizona decrease Medicare segment pension assets by $6,070 as of January 1, 2005.  Arizona agreed with our recommendation.