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Department of Health and Human Services

Office of Inspector General -- AUDIT

"Medicare Contractor's Pension Segmentation Arkansas Blue Cross and Blue Shield," (A-07-98-02524)

September 3, 1998

Complete Text of Report is available in PDF format (885 KB). 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, Arkansas Blue Cross and Blue Shield. Our review showed that Arkansas overstated Medicare segment assets as of January 1, 1996 by $2,017,336. This overstatement occurred primarily because Arkansas assigned Medicare segment contributions incorrectly and mis-identified participants as to Medicare and non-Medicare in calculations for Medicare benefit payments and transfers. We recommend that Arkansas decrease the January 1, 1996 assets of the Medicare segment by $2,017,336. Arkansas concurred with our findings and recommendation.