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

This final report provides the results of our review of Unfunded Pension Costs of Blue Cross and Blue Shield of Nebraska (Nebraska). Nebraska did not make contributions to the pension trust fund for Plan Years 1987 through 1992. Accordingly, Nebraska did not fund the pension costs identifiable with its Medicare segment during this period. As a result, Nebraska accumulated unfunded pension costs of $73,509 as of January 1, 1995. Nebraska must separately identify and eliminate this amount from the amortization components of future pension costs. Nebraska accepted our recommendation.