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Department of Health and Human Services

Office of Inspector General -- AUDIT

"Follow up Audit of the Medicaid Drug Rebate Program in Virginia," (A-03-07-00218)

January 31, 2008

PDF File Complete Text of Report is available in PDF format (285 kb). Copies can also be obtained by contacting the Office of Public Affairs at 202-619-1343.


Our objectives were to determine whether the State agency had (1) implemented recommendations made in our previous audit of the Virginia drug rebate program and (2) established controls over collecting rebates on single source drugs administered by physicians.  We found the State agency implemented the recommendations from our prior audit when it implemented its new Medicaid Management Information System.  However, this new system did not allow the State agency to post to the National Drug Code level rebates received for periods prior to implementation.  The State agency has established controls and accountability for collecting rebates on single source drugs.  We recommended that the state agency implement a policy to ensure that its accounting records reconcile with account receivables reported on the quarterly Form CMS-64.9.  The State concurred with our finding.