Report on the Audit of Administrative Costs Incurred Under Parts A and B of the Health Insurance for the Aged and Disabled Programs by Blue Cross and Blue Shield of Michigan

This final audit report provides the results of our review of administrative costs incurred by Blue Cross and Blue Shield of Michigan (BCBSM) for the period October 1, 1987 through September 30, 1989. The audit was performed under contract by the certified public accounting firm of Davis, Graves & Livingston, P.C. The audit resulted in recommended financial adjustments totaling approximately $3.0 million and costs set aside totaling $4.2 million for adjudication by the Health Care Financing Administration (HCFA). Regional HCFA officials generally concurred with the findings and recommendations.