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Department of Health and Human Services

Office of Inspector General -- AUDIT

"Nationwide Audit of Six Ulcer Treatment Drugs Reimbursed Under the Medicaid Prescription Drug Program," (A-06-92-00003)

July 27, 1993

Complete Text of Report is available in PDF format (1.82 MB). Copies can also be obtained by contacting the Office of Public Affairs at 202-619-1343.


This final audit report points out that significant Medicaid savings can be achieved by limiting reimbursement of six ulcer treatment drugs to the manufacturer's recommended dosages. We reviewed reimbursement records for 1,600 randomly selected Medicaid recipients in eight States who received ulcer treatment therapy through at least 1 of 6 ulcer treatment drugs. We computed a potential cost savings of $116,133 for Calendar Year 1990 for 606 recipients in our sample that received dosages in excess of the manufacturers' recommendations. We estimate that national savings could total about $112 million annually. We recommended that the Health Care Financing Administration encourage States to establish procedures that limit payment for the six ulcer treatment drugs to the dosages recommended by the manufacturers.