U.S. flag

An official website of the United States government

Dot gov

The .gov means it's official.
Federal government websites often end in .gov or .mil. Before sharing sensitive information, make sure you're on a federal government site.


The site is secure.
The https:// ensures that you are connecting to the official website and that any information you provide is encrypted and transmitted securely.

Department of Health and Human Services

Office of Inspector General -- AUDIT

"6-State Rollup Review of Medicaid Drug Rebate Collections," (A-07-04-04030)

February 26, 2004

Complete Text of Report is available in PDF format (405 kb). Copies can also be obtained by contacting the Office of Public Affairs at 202-619-1343.


The objective of this audit was to determine whether the six State agencies in Region VIII (Utah, Wyoming, Colorado, Montana, North Dakota, and South Dakota) had established adequate accountability and internal controls over their respective Medicaid drug rebate programs.  Individual reports were issued to each State agency, and this report summarizes the issues identified in those reports.

The State agencies in Utah, Wyoming and Montana had not established adequate accountability and controls over their Medicaid drug rebate programs.  As a result, there was no assurance that all drug rebates due to those States were collected.  North Dakota, Colorado and South Dakota had generally established adequate controls and procedures.  However, we did make specific recommendations regarding their programs to address minor weaknesses.  Specific recommendations were made to each of the State agencies that addressed the weaknesses described above.  All but one of the six State agencies generally agreed with our findings and recommendations and indicated that corrective action had been enacted or was planned.  Wyoming did not concur with our findings.