Audit of Six Ulcer Treatment Drugs Reimbursed Under the Indiana Medicaid Prescription Drug Program

This final audit report points out that the State agency did not have any restrictions pertaining to the manufacturers' recommended dosages for ulcer treatment drugs. About $1.35 million (Federal share) in cost savings could have been realized for Calendar Year 1990 had the State agency limited payment for these drugs to the amount needed to pay for the manufacturers' recommended dosages. We recommended that the State agency establish procedures to limit the payment for these ulcer treatment drugs to the manufacturers' recommended dosages.