Review of Unfunded Pension Costs of Anthem Blue Cross and Blue Shield of Connecticut

EXECUTIVE SUMMARY:

This report provides the results of our review of Unfunded Pension Costs of Anthem Blue Cross and Blue Shield of Connecticut (Connecticut). During our previous review of Connecticut (CIN: A-07-93-00710), we determined that the Medicare segment accumulated $184,209 in unfunded pension costs as of January 1, 1992. Additionally, as of January 1, 1992, Connecticut had accumulated unabsorbed credits totaling $53,183 attributable to the Medicare segment. These unabsorbed credits, which were allocable to Medicare contracts in prior periods, must be absorbed by future pension costs, and are unallowable for Medicare reimbursement.