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Department of Health and Human Services

Office of Inspector General -- AUDIT

"Medicaid Drug Rebates: Improvements Needed in the Health Care Financing Administration's Procedures to Implement the Medicaid Drug Rebate Program," (A-06-91-00102)

April 23, 1992

Complete Text of Report is available in PDF format (562 kb). Copies can also be obtained by contacting the Office of Public Affairs at 202-619-1343.


This final report discusses the effectiveness of the Health Care Financing Administration's (HCFA) procedures to implement the Medicaid drug rebate provisions contained in the Omnibus Budget Reconciliation Act of 1990 (OBRA '90). Our review identified 200 different drug codes in three states involving 22 different drug manufacturers where errors in the average manufacturers' price, base AMP and best price resulted in URAs being overstated. Also, some States did not successfully meet the July 30, 1991 billing deadline for billing manufacturers under the Medicaid drug program.