U.S. flag

An official website of the United States government

Dot gov

The .gov means it's official.
Federal government websites often end in .gov or .mil. Before sharing sensitive information, make sure you're on a federal government site.

Https

The site is secure.
The https:// ensures that you are connecting to the official website and that any information you provide is encrypted and transmitted securely.

Skip to Content

Department of Health and Human Services

Office of Inspector General -- AUDIT

"Review of Medicare Contractor's Pension Segmentation, Pennsylvania Blue Shield," (A-07-93-00712)

May 6, 1994


Complete Text of Report is available in PDF format (1.1 MB). Copies can also be obtained by contacting the Office of Public Affairs at 202-619-1343.

EXECUTIVE SUMMARY:

This final audit report points out that Pennsylvania Blue Shield (PBS) omitted Medicare cost centers and misidentified Medicare participants in its calculation of the 1981 Medicare asset fraction. As a result pension assets of the Medicare segment were understated by $616,636 as of January 1, 1986. The PBS' update of the Medicare segment assets to January 1, 1992 understated the assets by an additional $412,751 due to the prior error. We recommended that PBS increase the January 1, 1992 asset base of the Medicare segment by $1,029,387.