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Department of Health and Human Services

Office of Inspector General -- AUDIT

"Pension Protection Plan Lump Sum Benefit Payments Claimed by Blue Cross Blue Shield of Massachusetts," (A-07-03-03037)

April 10, 2003


Complete Text of Report is available in PDF format (807 KB). Copies can also be obtained by contacting the Office of Public Affairs at 202-619-1343.


EXECUTIVE SUMMARY:

The purpose of this review was to determine the allowability of claims by Blue Cross Blue Shield of Massachusetts (Massachusetts) to Medicare for reimbursement of lump sum benefit payments made from the Pension Protection Plan (PPP) for the years 1987 through 1997.   We determined that Massachusetts over claimed allowable lump sum benefit payments made from its PPP for the years 1987 through 1997.  During this period, the allowable lump sum payments were $1,204,959.  However, Massachusetts claimed PPP lump sum payments of $1,649,372 for Medicare reimbursement.  As a result, Massachusetts over claimed allowable PPP lump sum payments by $444,413.  We recommended that Massachusetts revise its claim for benefit payments made from its PPP to eliminate the unallowable benefit payments of $444,413.  Massachusetts agreed with our finding in total.