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Department of Health and Human Services

Office of Inspector General -- AUDIT

"Audit of Medicare Contractor's Segmented Pension Cost, Blue Shield of California," (A-07-92-00585)

February 1, 1994

Complete Text of Report is available in PDF format (1.94 MB). Copies can also be obtained by contacting the Office of Public Affairs at 202-619-1343.


This final audit report points out that California Blue Shield (CBS) overstated Medicare pension assets by $1.8 million and accumulated $424,403 in unfunded pension costs that are unallowable for Medicare reimbursement. We recommended financial adjustments and procedural corrections. The CBS did not agree, but Regional Health Care Financing Administration officials concurred with our findings and recommendations.