GOV’T AUDIT INSIDER: Weaknesses found in Medicaid drug rebate programs
Healthcare Auditing Weekly, August 2, 2005
An OIG summary report of audits of Medicaid drug rebate programs found that 45 states and the District of Columbia had weaknesses in accountability and internal controls; only four states had no weaknesses. The weaknesses included unreliable information submitted to CMS on the Medicaid Drug Rebate Schedule in 37 states, improper accounting for interest on late rebate payments in 27 states, an inadequate rebate collection system in 17 states, and an inadequate dispute resolution and collection process in 15 states, according to the report.
The OIG recommends that CMS reemphasize the requirement that states submit accurate and reliable information on Form CMS 64.9R and emphasize to states their need to place a priority on their billing and collecting of drug rebates.
During the audit, the OIG did the following:
- Interviewed state agency officials to determine the policies, procedures, and controls that existed with regard to the Medicaid drug rebate program
- Reviewed drug rebate accounts receivable records for each state
- Compared the data with the states' forms CMS 64.9R
Click here to read the audit report, "Multistate Review of Medicaid Drug Rebate Programs," (A-06-03-00048) issued July 6.
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