Administrative Costs Claimed Under Part B of the Health Insurance for the Aged and Disabled Program by Blue Cross and Blue Shield of Florida

EXECUTIVE SUMMARY:

This final audit report, prepared by Ollie Green & Company, certified public accountants, points out that Blue Cross and Blue Shield of Florida (Plan) claimed unallowable costs of about $14.7 million for administering the Medicare Part B program during the period October 1987 through September 1990. The unallowable costs consisted of; (1) costs of $11.7 million incurred and claimed in excess of budgeted amounts, (2) questionable costs of $2.7 million for legal and settlement expenses as a result of a lawsuit filed by an unsuccessful bidder, and (3) other unallowable costs totaling $0.2 million. We recommended financial adjustments and procedural improvements.