Colorado Claimed Unallowable Federal Reimbursement for Some Medicaid Physician-Administered Drugs 

The Colorado Department of Health Care Policy and Financing (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 $13 million ($6.5 million Federal share) in physician-administered drugs. Of this amount, $10.5 million ($5.2 million Federal share) was for single-source drugs, and $2.6 million ($1.3 million 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.