Nebraska Did Not Invoice Rebates to Manufacturers for Physician-Administered Drugs Dispensed to Enrollees of Medicaid Managed-Care Organizations

Before the start of our audit, the Nebraska did not invoice rebate-eligible physician-administered drugs dispensed to enrollees of Medicaid managed-care organizations (MCOs). Specifically, the State agency did not invoice manufacturers for rebates totaling $1.9 million ($1.1 million Federal share). These errors occurred because Nebraska did not have established policies and procedures in place to ensure that it accurately invoiced manufacturers to collect rebates for physician-administered drugs dispensed to enrollees of MCOs.