Arizona and other state Medicaid programs are expected to collect rebates for expensive brand-name prescription drugs that taxpayers fund on behalf of eligible residents.
U.S. Department of Health and Human Services’ OIG did a three-year review of Arizona and found the state lacked a comprehensive system for more than two years to collect lucrative rebates on behalf of taxpayers.
The conclusion was made that Arizona’s Medicaid program didn’t collect eligible rebates from pharmaceutical companies on the costliest brand-name drugs and doctor-administered drugs.
The federal audit, based on a review of records from April 1, 2010 through March 31, 2013, estimated the prescription-drug rebate collection shortfall potentially cost Arizona and the federal government $36.7 million.
The state’s Medicaid program, called the Arizona Health Care Cost Containment System, or AHCCCS, said the uncollected amount was less than 6 percent of total rebates the agency received from drug companies. The agency disputes the amounts in question.
Read more of the conversation between AHCCCS and the DHHS in The Arizona Republic.