Review of the District of Columbia's Medicaid Drug Rebate Program

EXECUTIVE SUMMARY:

The objective of this review was to evaluate whether the District of Columbia's Medical Assistance Administration (MAA) had established adequate accountability and internal controls over the Medicaid drug rebate program.  Generally, MAA had established adequate accountability and internal controls over the Medicaid drug rebate program using Affiliated Computer Services (ACS) as its fiscal agent.  However, we found that the (1) fiscal year 2002 Centers for Medicare & Medicaid Services 64.9R reports were not accurate and included incomplete data; and (2) endorsement stamp used by ACS on drug rebate checks was too generic and did not provide for proper security over the checks.