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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.


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.