Review of the Commonwealth of Virginia's Medicaid Drug Rebate Program

EXECUTIVE SUMMARY:

The objective of our review was to determine whether the Commonwealth of Virginia's Department of Medical Assistance Services (DMAS) established adequate accountability and internal controls over the Medicaid drug rebate program.  We found that DMAS, along with its fiscal agent First Health Services Corporation (FHSC), had established adequate accountability and internal controls over the Medicaid drug rebate program.  However, we found that FHSC had not reconciled payments to the National Drug Codes level.