Department of Health

Administration of the Medicaid Drug Rebate Program

Under the Medicaid Drug Rebate Program, the Department of Health can receive rebates from drug manufacturers for prescription drugs provided to Medicaid recipients. In certain circumstances, some drugs are not eligible for rebates, but can be purchased at certain federally mandated discounts. We examined the Departmentís administration of this program and found that the Department did not properly track or pursue the rebate revenue due from drug manufacturers, and did not ensure that drugs not eligible for rebates were appropriatey discounted. As a result, during the 30 months covered by our audit, the Department did not recover rebate revenue or realize discounts totaling between $14.1 million and $19.6 million. We recommended that the Department improve its recordkeeping and overall administration of the Medicaid Drug Rebate Program, and take action to ensure that all recoverable revenues were collected.

For a complete copy of Report 2000-S-33 click here.
For a copy of the 90-day response click here.
For a copy of the associated follow-up report click here.