Review of Unfunded Pension Costs of Blue Cross and Blue Shield of Mississippi

EXECUTIVE SUMMARY:

This final report provides the results of our review of Unfunded Pension Costs of Blue Cross Blue Shield of Mississippi (Mississippi) for Plan Years 1986 through 1995. Contributions were not made to the pension trust fund for Plan Years 1987 through 1991. Accordingly, Mississippi did not fund the pension costs identifiable with its medicare segment during this period. As a result, Mississippi accumulated unfunded pension costs of $482,549 as of January 1, 1996. Mississippi must separately identify and eliminate this amount from the amortization components of future pension costs. Mississippi accepted our recommendation.