Department of Health and Human Services

Office of Inspector General -- AUDIT

"Follow-Up Audit of the Medicaid Drug Rebate Program in Arkansas," (A-06-07-00015)

November 27, 2007


PDF File Complete Text of Report is available in PDF format (784 kb). Copies can also be obtained by contacting the Office of Public Affairs at 202-619-1343.


EXECUTIVE SUMMARY:

Our objectives were to determine whether the State agency had (1) implemented the recommendations made in our previous audit of the Arkansas drug rebate program and (2) established controls over collecting rebates on single source drugs administered by physicians.

The State agency implemented the recommendations from our prior audit that related to interest payments received from manufacturers, with one exception:  It did not implement a procedure for verifying the accuracy of interest payments received from manufacturers. The State agency established controls over collecting rebates on single source drugs administered by physicians. 

We reiterated our recommendation that the State agency implement a procedure to ensure that interest payments are verified for accuracy.  The State agency agreed with our finding and said that it would put procedures for verifying interest in writing.  The State agency also said that it was verifying current and past interest payments.