Review of the Medicaid Drug Rebate Program In Minnesota

In a follow-up audit of Minnesota's Medicaid drug rebate program, we found that, as of June 30, 2006, the State had established controls for 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 CMS and paying quarterly rebates to the States.

Because the State had adequate controls over its drug rebate program, we made no recommendations.