South Dakota Claimed Unallowable Federal Reimbursement for Some Medicaid Physician-Administered Drugs 

The South Dakota Department of Social Services (State agency) did not always comply with Federal Medicaid requirements for invoicing manufacturers for rebates for physician-administered drugs. The State agency did not invoice manufacturers for rebates associated with $2 million ($1.2 million Federal share) in physician-administered drugs. Of this amount, $1.6 million ($941,000 Federal share) was for single-source drugs, and $458,000 ($266,000 Federal share) was for top-20 multiple-source drugs. Because the State agency's internal controls did not always ensure that it invoiced manufacturers to secure rebates, the State agency improperly claimed Federal reimbursement for these single-source drugs and top-20 multiple-source drugs.