Complete Text of Report is available in PDF format
(156 KB). Copies can also be obtained by contacting the Office of Public Affairs
at 202-619-1343.Complete Text of Report is available in PDF format
(156 KB). Copies can also be obtained by contacting the Office of Public Affairs
at 202-619-1343.EXECUTIVE SUMMARY:
During the period October 1, 1995 through November 30, 1996, California Physicians' Service, dba Blue Shield of California, claimed administrative costs totaling $33,951,916. The administrative costs charged to Medicare were overstated by $234,378. The $234,378 consisted of unreasonable increases in executive compensation costs ($60,230), salaries over the Federal limit ($20,122), unallowable consulting fees ($111,679), legal fees ($29,418), executive search fees ($4,829) and understated complementary credits ($8,100). We recommended that Blue Shield reduce its Medicare claims for the $234,378 in overstated costs. With the exception of our recommended adjustment of $8,100 for the complementary insurance credit, Blue Shield concurred with our audit findings.
