Drugmaker Millions Go Untapped as States Fail to Collect Rebates

State governments are failing to collect hundreds of millions of dollars in eligible rebates from drugmakers for medicines covered by Medicaid, federal watchdogs said.

A report released this week by the Department of Health and Human Services Office of Inspector General found state Medicaid agencies could have invoiced manufacturers for an additional $225.7 million in rebates for drugs reimbursed on a fee-for-service basis. States also should have collected an extra $236.2 million tied to medicines given to Medicaid patients enrolled in managed care plans, the report concluded.

The findings, based on a review of 57 prior OIG audits involving ...