The state of Arkansas claimed $9.9 million in unallowable federal reimbursements for Medicaid physician-administered drugs, according to an HHS Office of Inspector General report. The state failed to submit invoices for the rebates and also failed to submit data needed to secure almost $1.4 million in physician-administered drug claims, OIG found.

OIG said the state should reimburse the federal government for the $9.9 million and should work out with the Centers for Medicare & Medicaid Services whether the remaining $1.4 million of other physician-administered drug claims could be invoiced to the drugmakers for rebates and, if so, refund the federal share of those rebates.

The state declined to refund the federal share of ineligible claims and said all rebate-eligible drugs would be properly invoiced eventually.