Department of Health and Human Services

Office of Inspector General -- AUDIT

"Review of Pension Costs Claimed for Medicare Reimbursement by Blue Shield of California," (A-07-98-02523)

April 1, 1999

Complete Text of Report is available in PDF format (1.12 MB). Copies can also be obtained by contacting the Office of Public Affairs at 202-619-1343.

This final audit report points out that Blue Shield of California, due to inappropriate cost allocation methods, over claimed employees' pension costs for Medicare reimbursement by $2.4 million over Fiscal Years 1991 through 1997. Blue Shield of California has agreed to our recommendation that they refund the $2.4 million to the Medicare program.