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Audit (A-05-12-00011)

06-21-2012
Indiana Reduced Medicaid Costs for Home Blood-Glucose Test Strips by Approximately 50 Percent Using Manufacturer Rebates

Executive Summary

The Indiana Medicaid program achieved savings of approximately 50 percent by establishing a manufacturer rebate program for test strips. The net cost of test strips obtained through Indiana's manufacturer rebate program was significantly lower than the Indiana Medicaid maximum reimbursement rate of $36.72. Indiana has two separate manufacturer rebate contracts that reduced the net cost to $17.72 or $14.70 per 50-unit pack. Overall, the Indiana Medicaid program achieved savings of approximately $1.2 million during the period January 1, 2011, through June 30, 2011, through the use of manufacturer rebates for test strips.

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