Follow-up Audit of the Medicaid Drug Rebate Program in Pennsylvania

Our objectives were to determine whether the Department of Public Welfare (the State agency) had (1) implemented the recommendations made in our previous audit of the Pennsylvania drug rebate program and (2) established controls over collecting rebates on single source drugs administered by physicians.

Although the State agency did not concur with our findings, it did implement the recommendations made in our previous audit.  The State agency introduced a new Medicaid Management Information System, the PROMISe System, which corrected the weaknesses noted in our prior review.  In addition, the State agency established controls over collecting rebates on single source drugs administered by physicians.  Accordingly, we have no recommendations at this time.