Audit of Medicare Contractor's Segmented Pension Cost, IASD Health Services Corporation

This final audit report points out that the IASD Health Services Corporation (IASD) understated Medicare's pension assets as of 1986 by $1,450,102. This occurred because IASD omitted certain cost centers in computing the actuarial liability of the Medicare segment. Additional understatements totaling $179,280 have occurred since 1986 due to the original understatement and certain participants in the Medicare segment were incorrectly identified. We recommended financial adjustments to correct the understatement in Medicare's pension assets.