Department of Health and Human Services

Office of Inspector General -- AUDIT

"Audit of the Pension Plan at a Terminated Medicare Contractor, Blue Cross Blue Shield of Connecticut," (A-07-02-03021)

February 27, 2004

Complete Text of Report is available in PDF format (436 kb). Copies can also be obtained by contacting the Office of Public Affairs at 202-619-1343.

EXECUTIVE SUMMARY:

Blue Cross Blue Shield of Connecticut was a Medicare contractor until its contract was terminated in 1999 and, as such, was allowed to claim reimbursement for its Medicare employees' pension costs.  Federal regulations and the Medicare contracts provide, however, that pension gains which occur when a Medicare segment of a pension plan closes, be credited to the Medicare program.  Accordingly, we recommended that Connecticut remit $1,351,284 in excess pension assets to the Medicare program.  Connecticut agreed with our recommendation.