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Department of Health and Human Services

Office of Inspector General -- AUDIT

"Review of Pension Plan at a Terminated Medicare Contractor, Rocky Mountain Health Care Corporation," (A-07-97-01234)

May 6, 1998

Complete Text of Report is available in PDF format (3.76 MB). Copies can also be obtained by contacting the Office of Public Affairs at 202-619-1343.


This final audit report points out that approximately $4.1 million in excess pension assets at the Rocky Mountain Health Care Corporation (Rocky Mountain) should be remitted to Medicare. Rocky Mountain closed its Medicare segment (line of business) effective December 29, 1995. Federal regulations and Medicare contracts provide that pension gains which occur when a Medicare segment closes should be credited to the Medicare program. We recommended that Rocky Mountain return the $4.1 million in excess pension assets to Medicare. The Health Care Financing Administration concurred with our analysis and recommendation.