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 Unfunded Pension Costs of Health Care Service Corporation," (A-07-94-00762)

July 19, 1994


Complete Text of Report is available in PDF format (1.64 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 the Health Care Service Corporation (HCSC) had accumulated $1.2 million in pension costs as of January 1, 1992, that are unallowable for Medicare reimbursement. Pension costs assigned to an accounting period, but not funded by tax filing deadlines, may not be claimed in subsequent accounting periods. The HCSC made contributions to the pension trust fund for Plan Years 1986 through 1991. However, HCSC did not fully fund the pension costs for Plan Years 1988 through 1990. We are recommending that HCSC make the proper accounting adjustments to repay Medicare for the unallowable unfunded pension costs.