Corporate Compliance

Oregon state agency failed to implement all changes

Healthcare Auditing Weekly, April 8, 2008

The Oregon Medicaid Agency enacted some, but not all of the changes recommended by an OIG audit, a follow-up audit determined.

The follow-up audit found the state agency had:

  • Implemented the recommendations regarding the Oregon drug rebate program
  • Established controls over collecting rebates on single source drugs administered by physicians

While the state agency did establish controls over collecting rebates on single source drugs administered by physicians, it billed using the wrong crosswalk from January 2006 through May 2007.

The OIG recommended the state agency:

  • Reconcile the ending balance of uncollectible rebates and report drug rebates for the Supplemental program
  • Create a sufficiently detailed subsidiary accounts receivable system to track drug rebate activity by National Drug Code for all drug rebate balances
  • Verify the accuracy of interest payments received
  • Ensure the crosswalk is used for collecting rebates for single source drugs administered by physicians
  • Bill manufacturers for all drugs that were not billed from January 2006 through May 2007
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