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Department of Health and Human Services

Office of Inspector General -- AUDIT

"Audit of Administrative Costs Claimed Under Part B of the Health Insurance for the Aged and Disabled Program," (A-07-96-02001)

December 31, 1996

Complete Text of Report is available in PDF format (1.3 MB). Copies can also be obtained by contacting the Office of Public Affairs at 202-619-1343.


The final audit of administrative costs totaling $58,837,734 determined that $4,244,570 was unallowable. Blue Cross Blue Shield claimed $4,244,570 in excess of approved budgets, of which $258,534 was also questioned for other reasons. This $258,534 was made up of excess executive compensation $141,554 and unallowable cafeteria costs $116,980. We are recommending the final administrative cost proposal be reduced by a total of $4,244,570.