EXECUTIVE SUMMARY:
This final report provides the results of our review of Medicare Contractor's Pension Segmentation, Aetna Life and Casualty Company (Aetna). Our review showed that Aetna overstated Medicare segment assets as of January 1, 1996 by $910,513. The overstatement primarily occurred because Aetna used an incorrect pension cost to assign contributions to the Medicare segment in their update of pension assets. We recommended that Aetna decrease the January 1, 1996 assets of the Medicare segment by $910,513.