Follow-up Review of the Medicaid Drug Rebate Program in North Carolina

In a follow-up review of the North Carolina Medicaid drug rebate program, we found that the State agency had established controls over collecting rebates on single source drugs administered by physicians.  Manufacturers may make their outpatient drugs eligible for Federal Medicaid funding by entering into a rebate agreement with the Centers for Medicare and Medicaid Services and paying quarterly rebates to the States.  The Deficit Reduction Act of 2005 required States, as of January 2006, to begin collecting rebates on single source drugs administered by physicians.  This report offers no recommendations.