Audit of the Pension Plan at a Terminated Medicare Part A Contractor Blue Cross and Blue Shield of Louisiana

This final report provides the results of our review of Pension costs claimed for Medicare Part A Reimbursement by Blue Cross and Blue Shield of Louisiana (Louisiana). For 1988 through 1991, we determined that Louisiana under claimed allowable Medicare Part A pension costs. During this period, the allowable Medicare Pat A pension costs were $90,572. However, Louisiana claimed pension costs of $32,714 for Medicare reimbursement. As a result, Louisiana did not claim $57,858 of allowable Part A pension costs. The under claim occurred primarily because Louisiana did not base their claim on separately computed pension costs for the Medicare segment, calculated in accordance with the Cost Accounting Standards (CAS). We recommended that Louisiana revise its Final Administrative Cost Proposals (FACPs) to reflect the remaining allowable pension costs.