Corporate Compliance

Inconsistencies in the Medicaid Prescription Drug Program

Healthcare Auditing Weekly, November 20, 2007

The OIG found an estimated $11.8 million in inappropriately claimed Medicaid rebates during the first 6 months of 2006. These rebates can lead to false Medicaid rebate payments or disputes with manufacturers, according to the recent OIG audit.

The OIG also found:

  • Most of the inconsistencies involved the unit type, "each."
  • States converted less than half of their utilization data for drugs with unit of measure inconsistencies.
  • States are not efficiently detecting or correcting unit of measure inconsistencies.

The OIG recommended that CMS:

  • Give more specific guidance to manufacturers regarding the unit type "each."
  • Develop improve its guidance to States regarding detecting and converting unit of measure inconsistencies.

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