Michigan
U.S. Department of Health and Human Services Office of Inspector General
Published March 2026

Selected Diabetes and Weight Loss Drugs Were Dispensed to Michigan Medicaid Managed Care Enrollees in Accordance With Federal and State Requirements

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Overall Conclusion

Because the State agency ensured, for the sample items we reviewed, that the MCOs followed all outpatient prescription drug coverage and utilization requirements that were in place during our audit period, including prior authorizations and quantity limits, this report contains no recommendations.

Source Document

Audit Scope

Audit covered $524.9 million in Michigan Medicaid managed care encounter claims for 13 selected diabetes and weight loss drugs during October 1, 2023, through September 30, 2024. A stratified random sample of 105 encounter claims totaling $107,535 was reviewed to determine whether prior authorizations and quantity limits were met, and to verify the dispensing history aligned with State requirements.

Key Findings Summary

1

During our audit period, selected diabetes and weight loss drugs were dispensed to Michigan Medicaid managed care enrollees in accordance with Federal and State requirements.

2

Michigan ensured that the managed care organizations followed all outpatient prescription drug coverage and utilization requirements that were in place during our audit period, including prior authorizations and quantity limits, for all 105 encounter claims in our stratified random sample.

AI-Assisted

Generated by gpt-5-nano

AI Scope Summary

This audit examined whether Michigan Medicaid managed care enrollees were dispensed selected diabetes and weight loss drugs in accordance with Federal and State requirements during October 1, 2023, through September 30, 2024, and found compliance for the 105 sampled encounter claims, with observed rising monthly spending on certain GLP-1 and weight loss drugs and no recommendations issued.

AI-Generated Insight

The audit found that Michigan's Medicaid managed care enrollees were dispensed selected diabetes and weight loss drugs in accordance with Federal and State requirements for the sampled claims. It also notes spending increases in GLP-1 and anti-obesity drugs during the audit period and the implementation of new prior authorization requirements for GLP-1 weight loss drugs in early 2024.

Audit Objectives

1

Our objective was to determine whether selected diabetes and weight loss drugs were dispensed to Michigan Medicaid managed care enrollees in accordance with Federal and State requirements.

Audit Findings (2)

1

During our audit period, selected diabetes and weight loss drugs were dispensed to Michigan Medicaid managed care enrollees in accordance with Federal and State requirements.

2

Michigan ensured that the managed care organizations followed all outpatient prescription drug coverage and utilization requirements that were in place during our audit period, including prior authorizations and quantity limits, for all 105 encounter claims in our stratified random sample.

Recommendations (1)

1

This report does not contain recommendations.