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The objective of our review was to determine whether Blue Cross Blue Shield of Georgia (Georgia) complied with its Medicare contractís pension segmentation requirements while implementing the prior audit findings and updating the Medicare segmentís assets from January 1, 1993, to May 31, 2001. Georgia did not implement the prior audit recommendation to increase Medicare segment assets and did not comply with its Medicare contractís pension segmentation requirements while updating the segmentís assets from January 1, 1993, to May 31, 2001. As a result, Georgia understated the May 31, 2001, Medicare segment pension assets by $85,654.
We recommended that Georgia increase Medicare segment pension assets by $85,654 as of May 31, 2001, and implement controls to ensure that the Medicare segmentís assets are updated in accordance with the Medicare contract. Georgia concurred with our recommendations.