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Audit (A-07-08-00258)

11-04-2008
Review of Medicare Contractor's Pension Segmentation Requirements at Noridian Mutual Insurance Company for the Period January 1, 1998, to January 1, 2006

Executive Summary

Noridian Mutual Insurance Company (Noridian), a Centers for Medicare & Medicaid Services (CMS) contractor, understated the Medicare segment assets by $158,000. During our audit period, Noridian administered Medicare Part A and Part B operations under a cost reimbursement contract with CMS. We recommended that Noridian (1) increase Medicare segment assets by $158,000 as of January 1, 2006, and (2) implement controls to ensure that the Medicare segment's assets are updated in accordance with the Medicare contracts. Noridian concurred with our recommendations.

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