Department of Social Services

Medicaid Drug Rebate Program (Follow-Up Review)

Under the Medicaid drug rebate program, the Department of Social Services reimburses pharmacies that dispense certain prescription drugs to Medicaid recipients. The Department then requests rebates for the drugs from the drug manufacturers. In our prior audit report 94-S-5, we identified weaknesses in Department procedures for requesting and accounting for the rebates, as the Department requested far more from the drug manufacturers than it was due and could not determine the amount of rebates that had yet to be collected. We recommended that the Department develop an automated system to account for the drug rebates. In our follow-up review, we found that this system has been developed, but has not yet been implemented.

For a complete copy of Report 96-F-16 click here.
For a copy of the 90-day response click here.