Skip to Content

Department of Health and Human Services

Office of Inspector General -- AUDIT

"Review of Pension Costs Claimed for Medicare Reimbursement by Arkansas Blue Cross and Blue Shield," (A-07-98-02525)

September 3, 1998


Complete Text of Report is available in PDF format (1.01 MB). Copies can also be obtained by contacting the Office of Public Affairs at 202-619-1343.

EXECUTIVE SUMMARY:

This final report provides the results of our review of Pension Costs Claimed for Medicare Reimbursement by Arkansas Blue Cross and Blue Shield. Our review showed that Arkansas Blue Cross and Blue Shield (Arkansas) underclaimed allowable Medicare pension costs for 1991 through 1996 by $1,756,942. The underclaim occurred primarily because Arkansas did not base its claim on separately computed Cost Accounting Standards (CAS) pension costs for the Medicare segment. We recommend Arkansas revise its Final Administrative Cost Proposals (FACPs) to reflect the remaining allowable pension costs. Arkansas concurred with our finding and recommendation.