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Audit (A-09-08-00051)

Follow-Up Audit of the Medicaid Drug Rebate Program in Alaska

Executive Summary

Alaska's Department of Health and Social Services (the State agency) had not implemented the recommendations in our prior audit of the Medicaid drug rebate program to (1) report accurate amounts on the quarterly Form CMS-64.9R by reconciling to its subsidiary ledger system, (2) create a sufficiently detailed subsidiary accounts receivable system to track drug rebate activity before October 1, 2003, by National Drug Code, and (3) verify the accuracy of interest collections received. The State agency had established controls over collecting rebates on single source drugs administered by physicians.

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