Review of Medicare Contractor's Pension Segmentation, Empire Blue Cross Blue Shield

The objective of this review was to determine Empire Blue Cross Blue Shield's (Empire) compliance with pension segmentation requirements of its Medicare contract. The review addressed the initial determination of pension assets for Empire's Medicare segment as of January 1, 1999, the date that such requirements were applicable to Empire. We determined the Medicare segment pension assets to be $38,626,351 as of January 1, 1999. We recommended that Empire record Medicare segment pension assets of $38,626,351 and periodically update the Medicare segment pension assets for contributions, income, benefit payments, and expenses. Empire agreed with our recommendations.