tci Medicare Compliance & Reimbursement - 2005 Issue 32

PHARMACEUTICALS: States May Ask For More Provider Rebates

OIG finds weak accounting controls on state Medicaid programs.As states try to improve their Medicaid drug rebate collection systems, pharmaceutical providers' bottom lines could start feeling the pinch.Forty-five out of 49 states and the District of Columbia have not strengthened their Medicaid drug rebate accounting controls, the HHS Office of Inspector General found in an audit released in July. Very Few States Were Weakness-Free Despite states' improvements since the OIG's previous audit in 1993, only four states had no weaknesses in their drug rebate programs' internal controls and accountability, the OIG says.Thirty-seven states submitted unreliable information...

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