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We determined whether the State agency had (1) implemented the recommendations made in our previous audit of the Oregon drug rebate program and (2) established controls over collecting rebates on single source drugs administered by physicians. The State agency did not implement all of the recommendations made in our previous audit. In addition, the State agency established controls over collecting rebates on single source drugs administered by physicians. However, for the period January 2006 through May 2007, the State agency billed using an incorrect crosswalk.
We recommended that the State agency implement policies, procedures, and internal controls to (1) reconcile the ending balance of uncollectible rebates to the receivable account and report drug rebates for the supplemental program on Form CMS-64.9R (2) create a sufficiently detailed subsidiary accounts receivable system to track drug rebate activity by National Drug Code for all drug rebate balances (3) verify the accuracy of interest payments received, and (4) ensure that the crosswalk is used for collecting rebates for single source drugs administered by physicians and bill manufacturers for all drugs that were not billed for the period January 2006 through May 2007. The State agency concurred with the findings.