SALT LAKE CITY — The Utah Department of Health and Human Services lost almost $50 million in drug rebates due to a technical error after it transitioned to a new processing system for Medicaid claims in 2023.
On Wednesday, it announced it has recouped $36 million and is "on track" to collect the $49.2 million by the end of the year.
"This aggressive recovery comes after the implementation of a permanent technological fix and enhanced oversight protocols designed to protect taxpayer funds and ensure the long-term integrity of Medicaid pharmacy reporting," a statement said.
It said the fix is a "department-wide effort" to fix an interface error that began in April 2023 with the transition to Prism. According to the statement, the transition "modernized many aspects of state health care," but introduced an error with the system and one contracted pharmacy vendor, preventing data from being reported to manufacturers.
"Moving forward, DHHS is committed to ongoing rebate payment program surveillance, ensuring that Medicaid funds are managed with the precision and accountability the public expects," the department's statement said.
It said they do not expect future obstacles to collecting the money and will continue to work with Utah's auditor's office to provide updates.
