North Dakota Correctly Claimed Federal Reimbursement for Most Medicaid Physician-Administered Drugs 

Although the North Dakota Department of Human Services (State agency) generally complied with Federal Medicaid requirements for invoicing manufacturers for rebates for physician-administered drugs, it claimed unallowable Federal reimbursement for some of these drugs. The State agency did not invoice manufacturers for rebates associated with $138,000 ($79,000 Federal share) in physician-administered drugs. Of this amount, $137,000 ($78,000 Federal share) was for single-source drugs, and $1,000 ($700 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.