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Financial Management: UMWA's Combined Fund Finances

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Report Type Reports and Testimonies
Report Date June 30, 1994
Report No. HEHS-94-201R
Subject
Summary:

Pursuant to a congressional request, GAO reviewed the United Mine Workers of America (UMWA) Combined Benefit Fund, focusing on the fund's: (1) beneficiaries, expenses, and revenues; and (2) Medicare reimbursement arrangements. GAO noted that: (1) as of December 31, 1993, the fund had 101,816 beneficiaries, most of whom were assigned to coal industry operators; (2) about 150 companies terminated their contributions to the fund, which necessitated the reassignment of their beneficiaries; (3) the fund has billed all operators $230.432 million for their fiscal year (FY) 1993 and FY 1994 premiums; (4) the FY 1993 expense projection for the prior trusts did not reflect an increase in the fund's Medicare per capita reimbursement rate; (5) the fund's expenses for the next 8 fiscal years will remain essentially constant; and (6) the fund will have surpluses in each FY, since the premiums cannot be reduced under the present law.

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