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Department of Health and Human Services

Office of Inspector General -- AUDIT

"Audit of the Pension Plan at a Terminated Medicare Contractor, Blue Shield of California," (A-07-98-02522)

April 1, 1999


Complete Text of Report is available in PDF format (608 KB). Copies can also be obtained by contacting the Office of Public Affairs at 202-619-1343.

EXECUTIVE SUMMARY:

Blue Shield of California (BSC) was a Medicare Part B contractor until its contract was terminated in 1996. As of that time BSC had accumulated about $7.6 million in excess pension assets applicable to its Medicare business segment. The Medicare contract and Federal regulations provide that pension gains attributable to the Medicare segment of a pension plan at a terminated contractor be credited to the Medicare program. Accordingly, we have recommended and BSC has agreed to remit the $7.6 million in excess pension assets to the Medicare program.