Review of Unfunded Pension Costs of Blue Cross of Washington and Alaska

EXECUTIVE SUMMARY:

This final report provides the results of our review of Unfunded Pension Costs of Blue Cross of Washington and Alaska (Washington/Alaska) for Plan Years 1986 through 1995. Contributions to the pension trust fund for Plan Years 1986 and 1988 through 1993. Accordingly, Washington/Alaska did not fund the pension costs identifiable with its Medicare segment during this period. As a result, Washington/Alaska accumulated unfunded pension costs of $106,843 as of January 1, 1996. Washington/Alaska must separately identify and eliminate this amount from the amortization components of future pension costs. Washington/Alaska agreed that there are accumulated unfunded pension costs of $106,843 as of January 1, 1996.