EXECUTIVE SUMMARY:
This final report provides the results of our review of Medicare Contractor's Pension Segmentation Blue Cross and Blue Shield of Florida (Florida). Our review showed that Florida understated medicare segment pension assets as of January 1, 1990 by $432,579. The understatement occurred because Florida did not fully implement the recommendations of our prior segmentation audit report. Florida's update of the Medicare segment assets from Plan Year 1990 to Plan Year 1994 understated segment assets by an additional $380,543. The understatement occurred primarily because Florida used incorrect participant data in their update of pension assets. We recommended that Florida increase the January 1, 1994 assets of the Medicare segment by $813,122 ($432,579 plus $380,543). Florida agreed with the recommendation.