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Department of Health and Human Services

Office of Inspector General -- AUDIT

"Review of Pension Costs Claimed for Medicare Reimbursement by Blue Cross and Blue Shield of Michigan," (A-07-96-01178)

November 8, 1996


Complete Text of Report is available in PDF format (1.96 MB). Copies can also be obtained by contacting the Office of Public Affairs at 202-619-1343.

EXECUTIVE SUMMARY:

This final report provides the results of our review of Pension Costs Claimed for Medicare Reimbursement by Blue Cross and Blue Shield of Michigan for 1986 through 1994. During this period, the allowable Medicare pension costs were $4,775,314. However, Blue Cross and Blue shield of Michigan (Michigan) claimed pension costs of $5,406,562 for Medicare reimbursement. As a result, Michigan claimed $631,248 in pension costs that were no allowable. The over claim occurred primarily because Michigan did not base he claims on separately computed pension costs for the Medicare segment. We recommended Michigan revise its claims to eliminate the unallowable pension costs.