Audit of Medicare Administrative Costs Claimed by Blue Shield of California for the Period October

/ 4 Department of Health and Human Services OFFICE OF AUDIT OF MEDICARE ADMINISTRATIVE COSTS CLAIMED BY BLUE SHIELD OF CALIFORNIA FOR THE PERIOD OCTOBER THROUGH NOVEMBER The designation or management practices as questionable or a recommendation for the disallowance of costs incurred or claimed, as well as other conclusions and recommendations in this report, represents the findings and opinions the Audit Services. Final determination on these matters will be made by authorized officials. OCTOBER 1999 CIN: A-09-98-00095 r-3’. -a+ INSPECTOR GENERAL - of Inspector General DEPARTMENT OF HEALTH of Natlons San Francisco, CA 94102 Karen SchievelbeinSenior Vice President and Chief Financial Officer Blue Shield of CaliforniaP.O. Box 7013San Francisco, California 94120Dear Ms. Schievelbein:Enclosed is the report covering the audit of administrative costs incurred under the Medicareprogram by Blue Shield of California, for the period October 1, 1995 throughNovember Your attention is invited to the audit findings and recommendations on pages 2 through 5 of the report, which are summarized in Exhibit A to our report. The below named Health Care Financing Administration (HCFA) official will be communicating with you in the near futureregarding implementation of recommendations. Should you have any questions or commentsconcerning these recommendations, please submit them to HCFA no later than 30 days from the date of this letter. ...