EXECUTIVE SUMMARY:
This final report presents the results of our audit of Medicare administrative costs incurred by Arkansas Blue Cross and Blue Shield, Inc. (the Plan). The Plan is the intermediary/carrier for the State of Arkansas and the Carrier for the State of Louisiana. For Arkansas, the Plan reported Medicare administrative costs of $6,706,232 for Part A and $14,216,931 for Part B. For Louisiana, the Plan reported Medicare administrative costs of $35,462,194 for Part B. Our recommended audit adjustments reduce reported costs by $1,441,937 ($222,176 for Part A and $645,087 for Part B of Arkansas and $574,674 for Part B of Louisiana).