Audit of the Medicaid Drug Rebate Program in Oregon

EXECUTIVE SUMMARY:

This report points out that Oregon had not established adequate policies, procedures, and internal controls over its drug rebate program as required by federal rules and regulations.  The State did not properly report drug rebate information to the Centers for Medicare and Medicaid Services nor adequately establish policies, procedures, and internal controls to account for drug rebate program transactions.  In addition, the lack of adequate internal controls increased the risk for fraud, waste and abuse of drug rebate program funds.  The State generally concurred with our findings.

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