State audit of Blue Cross Blue Shield of Michigan shows company in compliance with state and national accounting guidelines
223 audits of BCBSM have been conducted since 2006
May 18, 2009
DETROIT - A just-completed financial audit of Blue Cross Blue Shield of Michigan by the Michigan Office of Financial and Insurance Regulation found no material defects in the Blues financial statements over the audit's four-year period. The state audit was scheduled and routine.
OFIR routinely audits the Blues in a cycle in accordance with guidelines and procedures recommended by the National Association of Insurance Commissioners and the laws, rules and regulations prescribed by OFIR. The onsite field work for the audit lasted over a period of six months, during which state auditors and external actuaries reviewed balance sheets, revenues and expenses, capital and reserves, and cash flows.
The audit showed no need for material changes in the Blues' financial records, indicating that the company's independently audited financial statements accurately represent the company's financial performance across its lines of business.
"We are encouraged by the state's acknowledgement that our financial statements are in order," said Michele Samuels, BCBSM vice president, general auditor and corporate compliance. "Blue Cross is one of Michigan's most regulated and audited companies, and we are proud that these audits reflect the internal controls we put into running our business with transparency and integrity."
The audit was conducted by the Michigan Office of Financial and Insurance Regulation and covered the period from Jan. 1, 2004, to Dec. 31, 2007.
The Blue Cross and Blue Shield Association audits the company, as do Blues' group customers and entities of the federal government. Approximately 223 audits were performed by various Blues customers from 2006 through 2008. The company has its controls routinely audited by its Internal Audit Division. Its internal Audit Division has been honored twice with quality awards from the Institute of Internal Auditors, a worldwide organization.
Blue Cross Blue Shield of Michigan is a nonprofit corporation and an independent licensee of the Blue Cross and Blue Shield Association.