Audit of Medicare Administrative Costs Incurred Under Part A and B for Arkansas and Part B for Louisiana

This final report presents the results of our audit of Medicare administrative costs incurred by Arkansas Blue Cross and Blue Shield, Inc. (the Plan). The Plan is the intermediary/carrier for the State of Arkansas and the Carrier for the State of Louisiana. For Arkansas, the Plan reported Medicare administrative costs of $6,706,232 for Part A and $14,216,931 for Part B. For Louisiana, the Plan reported Medicare administrative costs of $35,462,194 for Part B. Our recommended audit adjustments reduce reported costs by $1,441,937 ($222,176 for Part A and $645,087 for Part B of Arkansas and $574,674 for Part B of Louisiana).