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Medicaid Drug Rebate Program: Inadequate Oversight Raises Concerns about Rebates Paid to States

GAO-05-850T Published: Jun 22, 2005. Publicly Released: Jun 22, 2005.
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Highlights

To help control Medicaid spending on drugs, states receive rebates from pharmaceutical manufacturers through the Medicaid drug rebate program. Rebates are based on two prices--best price and average manufacturer price (AMP)--reported by manufacturers. GAO was asked to discuss issues relating to the rebate program and in February 2005 issued a report, Medicaid Drug Rebate Program: Inadequate Oversight Raises Concerns about Rebates Paid to States (GAO-05-102). For that report, GAO reviewed program guidance and OIG reports and conducted an analysis of rebates for brand name drugs. This testimony is based on the February 2005 report.

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Topics

Data integrityDrugsHealth care cost controlHealth insuranceManufacturing industryMedicaidPharmaceutical industryPrices and pricingRebatesPharmacy benefit managers