EXECUTIVE SUMMARY:
This final report provides the results of our review of Medicare Contractor's Pension Segmentation, Arkansas Blue Cross and Blue Shield. Our review showed that Arkansas overstated Medicare segment assets as of January 1, 1996 by $2,017,336. This overstatement occurred primarily because Arkansas assigned Medicare segment contributions incorrectly and mis-identified participants as to Medicare and non-Medicare in calculations for Medicare benefit payments and transfers. We recommend that Arkansas decrease the January 1, 1996 assets of the Medicare segment by $2,017,336. Arkansas concurred with our findings and recommendation.