Review of the Pension Segmentation Requirements for the Represented Employees' Retirement Income Plan at Wisconsin Physicians Service Insurance Corporation for the Period of August 1, 1998, to December 31, 2007

Wisconsin Physicians Service Insurance Corporation (WPS), a Centers for Medicare & Medicaid Services (CMS) contractor, overstated Medicare Part B segment pension assets by $436,000 as of December 31, 2007, and overstated Medicare Part A segment pension assets by $47,000 as of December 31, 2002. Furthermore, WPS understated Medicare's share of excess pension liabilities, due to the termination of the Medicare Part A contract, by $51,000 as of December 31, 2002. WPS administered Medicare Part A and Part B operations under cost reimbursement contracts with CMS.