PHOENIX (AP) — A recent audit shows Arizona failed to collect nearly $40 million in rebates from prescription drug manufacturers since 2010 and may need to pay the federal government some of that total.

The Arizona Republic reports the U.S. Department of Health and Human Services' Office of Inspector General's three-year review of Arizona showed the state lacked a comprehensive system for more than two years to collect these rebates on behalf of taxpayers.

The audit, based on a review of records from April 1, 2010 through March 31, 2013, estimates the prescription-drug rebate collection shortfall possibly cost Arizona and the federal government $36.7 million.

The Inspector General says Arizona did not bill for and collect $26.4 million in rebates for brand-name and doctor-administered drugs that it was entitled to collect.

The report estimates Arizona could have collected another $10.3 million in rebates from other doctor-administered drugs.


Information from: The Arizona Republic,