Review of Pension Plan at a Terminated Medicare Contractor, Rocky Mountain Health Care Corporation

This final audit report points out that approximately $4.1 million in excess pension assets at the Rocky Mountain Health Care Corporation (Rocky Mountain) should be remitted to Medicare. Rocky Mountain closed its Medicare segment (line of business) effective December 29, 1995. Federal regulations and Medicare contracts provide that pension gains which occur when a Medicare segment closes should be credited to the Medicare program. We recommended that Rocky Mountain return the $4.1 million in excess pension assets to Medicare. The Health Care Financing Administration concurred with our analysis and recommendation.