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Department of Health and Human Services

Office of Inspector General -- AUDIT

"Audit of the Medicaid Drug Rebate Program in Utah," (A-07-03-04012)

June 9, 2003

Complete Text of Report is available in PDF format (1.13 MB). Copies can also be obtained by contacting the Office of Public Affairs at 202-619-1343.


The audit objective was to evaluate whether the Utah Department of Health, Division of Health Care Financing (DHCF), had established adequate accountability and internal controls over the Medicaid drug rebate program.  We found that the DHCF lacked sufficient internal controls with regard to the Medicaid drug rebate program as required by federal rules and regulations.  As a result, drug rebate receivables were perpetually understated and it is likely that the DHCF did not receive all drug rebates and interest on disputed or late rebate payments due from manufacturers.  Moreover, the lack of sufficient internal controls increased the risk for fraud, waste, or abuse of drug rebate program funds.