One significant cost to Medicaid is prescription drugs, which accounted for over $23 billion in FY 2008, or about 7% of total Medicaid outlays. Many of these drugs are susceptible to abuse and include pain relievers and stimulants that are on the Drug Enforcement Administration's Schedule of Controlled Substances. This report determined: (1) whether there are indications of fraud and abuse related to controlled substances paid for by Medicaid; (2) if so, examples of fraudulent, improper, and abusive activity; and (3) the effectiveness of internal controls that the fed. gov¿t. and selected states have in place to prevent fraud and abuse related to controlled substances. Includes recommendations. Charts and tables.