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OIG: Medicaid Drug Rebate Collections Uneven

John Commins, for HealthLeaders Media, June 28, 2011

The audit found that 36 of 49 states that responded to OIG's query reported collecting rebates on single-source physician-administered drugs, and 20 multiple-source, physician-administered drugs with the highest dollar value. An additional 12 states reported collecting rebates but were not in full compliance with federal requirements.

OIG last conducted an audit of states' efforts to collect Medicaid drug rebates in 2001, and found at that time that only 17 states had done so, and that most states reported at the time that they had no way of determining which drugmaker was responsible for which rebates.

That prompted the federal government in 2005 to require states to collect the rebates or risk losing matching federal funds. To help, the federal government created national drug codes that identified a drug's manufacturer.