Audit of the Medicaid Drug Rebate Program in the State of Hawaii

EXECUTIVE SUMMARY:

The objective of this review was to determine whether the State of Hawaii had established adequate accountability and internal controls over the Medicaid drug rebate program.  The report points out that the State had not provided effective control over and accountability for drug rebate collections.  Recommendations were made that the State more closely monitor subcontractor activities, accurately report drug rebate activities to the Centers for Medicare and Medicaid Services, and ensure interest on rebates is collected as appropriate.  The State concurred with the findings and recommendations.