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N.C. Earns High Marks In Medicaid Audit

Posted July 25, 2005

— An audit of 50 state Medicaid programs showed that North Carolina did not have any problems in billing and collection of drug rebates.

The audit was conducted by the Office of Inspector General (OIG) of the U.S. Department of Health and Human Services.

Under the Medicaid drug rebate program, drug makers provide price data to the Centers for Medicare and Medicaid Services (CMS), which administers the Medicaid program. CMS uses the information from the drug makers to compute the rebate and supplies states with that information. The state then bills the drug companies for the rebates.

North Carolina's Medicaid program provides health care for more than 1.5 million North Carolinians. In the last 12 months, North Carolina Medicaid received $370 million in rebates from drug makers.

Illinois, Maryland and Minnesota programs were also found to have no problems with their drug rebate programs.

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