Review of Unfunded Pension Costs of Blue Cross and Blue Shield of Florida

This final report showed that Blue Cross and Blue Shield of Florida did not make contributions to the pension trust fund for Plan Years 1990 and 1991. Accordingly, Florida did not fund the pension costs identifiable with its Medicare segment for these years. In addition, the 1993 contribution did not fully fund the entire pension cost. As a result, accumulated unfunded pension costs increased by $4,049,889 to $6,428,087 as of January 1, 1994. Florida must separately identify and eliminate $6,428,087 from the amortization components of future pension costs. Florida agreed with the recommendations.