Examination of the Administrative Costs Incurred Under the Health Insurance for the Aged and Disabled (Medicare) Part A

EXECUTIVE SUMMARY:

Blue Cross Blue Shield of Georgia (BCBS of GA) had generally established adequate systems for internal control, accounting and reporting for administrative costs. Further, except for the $575,471, the administrative costs for the period October 1, 1994 through September 30, 1999, were generally in accordance with Part 31 of the Federal Acquisition Regulations as interpreted and amended by Appendix B of BCBS of GA's agreement with the Centers for Medicare and Medicaid Services. We recommended disallowance of the $575,471.