NYS missed out on $183 million in rebates through Medicaid claims

ALBANY, N.Y. (WRGB) — Who doesn't love a good rebate? When you buy a new hair dryer or washing machine, sometimes a factory rebate can mean a few bucks back in your pocket — and we can all use that, right?

That's what makes this story so hard to believe.

The state comptroller says over a five-year period, the state failed to collect on $183 million of drug rebates it had coming its way.

$183 million basically tossed out the window — and You Paid For It.

Here's the deal. The New York State Department of Health is tasked with identifying Medicaid claims that are eligible for a rebate and then submit them to a third-party called Magellan Medicaid Administration. Magellan then sends the rebate invoices on to the drug manufacturers.

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An audit done by Comptroller Thomas DiNapoli's office found that mistakes have been made and claims have slipped through the cracks.

$109 million — more than half the money the state missed out on — came because of one specific error of omission on 490,000 claim forms.

The comptroller said the DOH made notable improvements during the audit period — but still, $183 million is just gone.

The DOH said the lost rebate money represents just a tiny fraction of Medicaid rebates for that audit period and said it recognizes the audit process as an opportunity to improve and strengthen policies and procedures.