Review of Pension Segmentation Requirements for the Salaried Qualified Pension Plan at Blue Cross Blue Shield United of for the Period January 1, 1986, to December 31, 1998

摘要

Blue Cross Blue Shield United of Wisconsin Blue Cross Blue Shield United of Wisconsin (BCBSUW), through its United Government Services business unit, administered Medicare Part A operations under cost reimbursement contracts with the Centers for Medicare & Medicaid Services (CMS). During our audit period (January 1, 1986, to December 31, 1998), BCBSUW maintained two defined benefit pension plans: a salaried pension plan and an hourly pension plan. For the purpose of this report, the term BCBSUW will be associated with the findings concerning the segmentation of the salaried pension plan pension assets for the period January 1, 1986, to December 31, 1998. Medicare. Since its inception, Medicare has paid a portion of contractors contributions to their pension plans. These contributions are allowable Medicare costs subject to the criteria set forth in the Federal Procurement Regulations, Federal Acquisition Regulation (FAR), Cost Accounting Standards (CAS), and Medicare contracts. Pension Segmentation. Beginning with fiscal year 1988, CMS incorporated specific segmentation requirements into the Medicare contracts to ensure conformance with CAS 413. The Medicare contracts define a segment and specify the methodology for the identification and initial allocation of pension assets to the segment. Additionally, the contracts require Medicare segment pension assets to be updated for each year after the initial allocation in accordance with CAS 412 and 413. OBJECTIVE. Our objective was to determine whether BCBSUW complied with Federal requirements and the Medicare contracts pension segmentation requirements when: identifying the Medicare segments pension asset base as of January 1, 1986, and updating the Medicare segments pension assets from January 1, 1986, to December 31, 1998.