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Department of Health and Human Services

Office of Inspector General -- AUDIT

"Audit of Special Early Retirement Program Pension Costs Claimed by Blue Cross and Blue Shield of Michigan, Inc.," (A-07-92-00525)

June 4, 1992

Complete Text of Report is available in PDF format (740 KB). Copies can also be obtained by contacting the Office of Public Affairs at 202-619-1343.


This final audit report points out that Blue Cross and Blue Shield of Michigan, Inc. received $2,135,884 in unallowable Medicare reimbursement for pension expenses claimed in 1988. The amount received was not computed or funded in accordance with Federal Acquisition Regulations or Cost Accounting Standards. We recommended procedural improvements and a financial adjustment for $2,135,884. Both Health Care Financing Administration and Blue Cross and Blue Shield of Michigan, Inc. officials concurred with our recommendations.