Review of Medicare Contractor's Pension Segmentation Requirements, Veritus, Inc. of Pennsylvania

EXECUTIVE SUMMARY:

The audit objective was to update Medicare segment assets from January 1, 1993 to December 31, 1997 for Veritus.  We found that Veritus had overstated its Medicare segment pension assets by $2,379,567 as of December 31, 1997.  Veritus should recognize Medicare segment pension assets of $9,821,687 as of December 31, 1997.  Veritus agreed with our recommendation.