Review of Medicare Contractor's Pension Segmentation, Blue Cross of Washington and Alaska

EXECUTIVE SUMMARY:

This final report provides you with the results of our review of Medicare Contractor's Pension Segmentation, Blue Cross of Washington and Alaska (Washington/Alaska). Our review showed that Washington/Alaska correctly identified Medicare segment pension assets of $699,059 as of 1986. However, Washington/Alaska's update of the Medicare segment assets from Plan Yar 1986 to Plan Year 1995 understated segment assets by $96,740. This understatement primarily occurred because Washington/Alaska misidentified plan participants as to segment and nonsegment. We recommended that Washington/Alaska increase the January 1, 1995 assets of the Medicare segment by $96,740. Washington/Alaska agreed with our recommendations.