Audit of the Pension Plan at a Terminated Medicare Part B Contractor Blue Cross and Blue Shield of Louisiana

This final report provides the results of our audit of the Pension Plan at a Terminated Medicare Part B Contractor, Blue Cross and Blue Shield of Louisiana (Louisiana). We identified Medicare Part B segment assets of $73,562 as of 1986. Additionally, we updated medicare Part B segment assets from Plan Year 1986 to Plan Year 1990 and identified segment assets of $206,471 as of January 1, 1990. Louisiana was the Medicare Part B subcontractor for the State of Louisiana until the contract was terminated effective October 1, 1989. Under the terms of the contract, any differences between the Medicare segment pension assets and actuarial liability at the time the Medicare segment terminated should be refunded to the Medicare Program. We recommended that Louisiana refund $194,177 of excess Medicare Part B pension assets resulting from the termination of their Medicare Part B contract.