Review of Medicare Contractor's Pension Segmentation Blue Cross and Blue Shield of Nebraska

This final report provides you with the results of our review of Medicare Contractor's Pension Segmentation, Blue Cross and Blue Shield of Nebraska (Nebraska). Our review showed that Nebraska understated medicare segment pension assets as of 1986 by $59,406. The understatement occurred because Nebraska incorrectly identified Medicare segment costs centers in determining Medicare's initial assets. However, Nebraska's update of the medicare segment assets from Plan Year 1986 to Plan Year 1994 overstated segment assets by $21,857. The overstatement primarily occurred because Nebraska used incorrect participant data and benefit payment data. We recommended that Nebraska increase the January 1, 1994 assets of the Medicare segment by $37,549 ($59,406 less $21,857). Nebraska accepted our recommendations.