Follow-up Audit of the Medicaid Drug Rebate Program in the District of Columbia

Our objectives were to determine whether the State agency had (1) implemented the recommendations made in our previous audit of the District's drug rebate program and (2) established controls over collecting rebates on single source drugs administered by physicians.  The State agency implemented the recommendations from our prior audit.  However, the State agency did not collect rebates on single source drugs administered by physicians or establish controls over and accountability for their collection.

We recommended that the State agency (1) implement policies and procedures to collect and submit utilization for single source drugs administered by physicians so that the District may obtain rebates for the drugs and (2) collect rebates for single source drugs, retroactive to January 1, 2006, when it implements its single source drug rebate program.  The State agency concurred with our findings and stated that it plans to adhere to our recommendations.