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

Arkansas did not always comply with Federal Medicaid requirements for invoicing manufacturers for rebates for physician-administered drugs. Arkansas did not invoice manufacturers for rebates associated with $9.9 million (Federal share) in physician-administered drugs. Of this amount, $8.5 million was for single-source drugs, and $1.4 million was for top-20 multiple-source drugs. Because Arkansas' internal controls did not always ensure that it invoiced manufacturers to secure rebates, Arkansas improperly claimed Federal reimbursement for these single-source drugs and top-20 multiple-source drugs.