Medicaid Drug Rebates: Improvements Needed in the Health Care Financing Administration's Procedures to Implement the Medicaid Drug Rebate Program

This final report discusses the effectiveness of the Health Care Financing Administration's (HCFA) procedures to implement the Medicaid drug rebate provisions contained in the Omnibus Budget Reconciliation Act of 1990 (OBRA '90). Our review identified 200 different drug codes in three states involving 22 different drug manufacturers where errors in the average manufacturers' price, base AMP and best price resulted in URAs being overstated. Also, some States did not successfully meet the July 30, 1991 billing deadline for billing manufacturers under the Medicaid drug program.