Department of Health and Human Services

Office of Inspector General -- AUDIT

"Review of Medicaid Payments for Outpatient Services and Prescription Drugs Provided to Incarcerated Recipients in the State of North Carolina," (A-04-02-06003)

October 31, 2002

Complete Text of Report is available in PDF format (2.7 mb). Copies can also be obtained by contacting the Office of Public Affairs at 202-619-1343.


The objective of our review was to determine the extent to which North Carolina used Medicaid funds to pay for prescription drugs and other (non-inpatient/long term care) health care services provided to inmates.  Medicaid regulations provide that Medicaid will not cover outpatient services or the cost of prescription drugs for inmates.  During the period October 1, 1998 through September 30, 2001, North Carolina’s controls were generally adequate to ensure that Medicaid did not pay for outpatient services and prescription drugs provided to incarcerated recipients.  The State concurred with our overall finding.