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Follow-Up Review of the Medicaid Drug Rebate Program in Rhode Island

Rhode Island's Department of Human Services (the State agency) had not fully implemented the recommendation from our prior audit to establish written procedures for recording drug rebate transactions. Our prior audit determined that the State agency had overstated its total uncollected drug rebate amount by $4.7 million, had not resolved claims disputed by drug manufacturers, and had not established written procedures for recording drug rebate transactions. The State agency had established controls over collecting rebates on single source drugs administered by physicians.

We reiterated our recommendation that the State agency establish written procedures for recording drug rebate transactions, and the State agency agreed with our recommendation.