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Audit (A-07-09-00308)

05-05-2010
Review of the Qualified Pension Plan at Blue Cross Blue Shield of Kansas, a Terminated Medicare Contractor, for the Period January 1, 1993, to February 29, 2008

Executive Summary

Blue Cross Blue Shield of Kansas (Kansas), a Centers for Medicare & Medicaid Services (CMS) contractor, understated the Medicare segment pension assets by $383,000, and the total company pension assets by $15 million for the period January 1, 1993, through February 29, 2008. Kansas also overstated Medicare’s share of the segment’s excess pension liabilities by $842,000. Kansas administered Medicare Part A and Part B operations under cost reimbursement contracts with CMS until the contractual relationship was terminated February 29, 2008.

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