Follow-Up Review of the Medicaid Drug Rebate Program in Mississippi

In a follow-up audit of Mississippi's Medicaid drug rebate program, we found that, as of June 30, 2006, the State corrected the previous weakness by upgrading its computer system to verify the accuracy of the accrual and collection of interest. However, it had not established controls over collecting rebates on single source drugs administered by physicians.

In August 2007, the State agency began billing pharmaceutical manufacturers for single source drugs administered by physicals and claimed to have collected over $21 million in rebates as of September 2008.