Audit of the Medicare Segment Closing at Travelers Insurance Company

This final audit report points out that approximately $5.6 million in excess pension assets at Travelers Insurance Company should be remitted to Medicare. Travelers closed its Medicare segment (line of business) effective December 31, 1994. Federal regulations and Medicare contracts provide that pension gains which occur when a Medicare segment closes should be credited to the Medicare program. We recommended that Travelers return the $5.6 million in excess pension assets to Medicare. The Health Care Financing Administration agreed with our analysis and recommendation.