Review of Medicare Contractor's Pension Segmentation Requirements at Blue Cross Blue Shield of Utah for the Period Covering January 1, 1986, to January 1, 1998

EXECUTIVE SUMMARY:

Our objective was to determine if Blue Cross Blue Shield of Utah (Utah) complied with the Medicare contracts' pension segmentation requirements while updating Medicare segment assets from January 1, 1986, to January 1, 1998. Utah did not correctly identify the initial allocation of pension plan assets to the Medicare segment as of January 1, 1986, and did not comply with the Medicare contract's pension segmentation requirements for updating Medicare segment assets from January 1, 1986, to January 1, 1991.  Additionally, Utah did not update the Medicare segment assets from January 1, 1991, to January 1, 1998.  We recommended that Utah identify Medicare segment pension assets of $2,040,174 as of January 1, 1998.  Utah agreed.