Review of the State of Delaware's Medicaid Drug Rebate Program

EXECUTIVE SUMMARY:

The objective of this review was to determine whether the Delaware Department of Health and Social Services (DHHS) had established adequate accountability and internal controls over rebate billings to drug manufacturers, the resulting rebate collections, and the resolution of disputes.   Generally, DHHS had established adequate accountability and internal controls over the Medicaid drug rebate program.  However, we found that (1) DHHS personnel had not routinely backed-up spreadsheets that contained the state's Medicaid drug rebate program information reported to CMS; and (2) DHHS overstated its outstanding rebate receivables, and had not reported rebates invoiced and adjustment on the CMS 64.9R.