An HHS Office of Inspector General (OIG) report released August 16, 2011 found that Medicaid’s net unit drug costs (i.e., pharmacy reimbursement minus rebates) were much lower than under Medicare Part D because of substantially higher Medicaid rebates for brand-name drugs. Specifically, while Part D sponsors and state Medicaid agencies paid pharmacies similar prices for the top 100 brand-name drugs, Medicaid recouped 45% of its drug spending in rebates compared to Part D sponsor recoupment of 19% of their drug spending in rebates. Rebates for the top 100 generic drugs under both programs were negligible. In the report, “Higher Rebates for Brand-Name Drugs Result in Lower Costs for Medicaid Compared to Medicare Part D,” the OIG recommends that CMS continually examine differences in rebates across Medicaid and Part D.