Department of Health and Human Services

Office of Inspector General -- AUDIT

"Review of Medicare Contractor's Pension Segmentation, Community Mutual Insurance Company," (A-07-96-01194)

July 1, 1997

Complete Text of Report is available in PDF format (1.03 MB). Copies can also be obtained by contacting the Office of Public Affairs at 202-619-1343.


This final report provides the results of our review of medicare contractor's Pension Segmentation, Community Mutual Insurance Company (Community Mutual). Our review showed that Community Mutual understated Medicare segment pension assets as of 1986 by $602,838. This understatement occurred because Community Mutual used an inappropriate year for their asset fraction calculation. Additionally, Community Mutual's update for the Medicare segment assets from Plan Year 1986 to Plan Year 1995 understated segment assets by $660,350. This understatement primarily occurred because Community Mutual started the update with an understated asset base. We recommended that Community Mutual increase the January 1, 1995 assets of the Medicare segment by $1,263,188.