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

In the follow-up review of South Carolina's Medicaid drug rebate program, we found that, as of June 30, 2006, the South Carolina Department of Health and Human Services (the State agency) partially implemented the recommendation related to interest accrual and collection from our previous drug rebate review. The State agency had not established procedures to validate the accuracy of interest paid by the manufacturers and had not actively pursued the outstanding interest due. As a result, there was no assurance that interest paid by the manufacturers was accurate or that the State agency had collected all of the interest due. The State agency had implemented the recommendations related to data integrity, including record retention.