Federal data revealed that Medicaid paid out more than $200 million for drugs that had never received the approval of the Food and Drug Administration.

The report was released by the Associated Press, which conducted the investigation. The news agency found that between 2004 and 2007, Medicaid paid out an estimated $198 million for unapproved drugs. How many? No less than 100, according to the report.

Of these drugs never approved by the FDA, the majority was for common conditions like colds. For instance, Carbofed is for cold and flu and Hylira is a dry skin ointment. The report says that thousands of such drugs may still be available.

Unapproved drugs make up about 2% of the prescription drugs put on the market annually in the United States. It happens quite often that physicians, as well as pharmacists, don’t know that the drugs have never received the federal approval.

Some are now wondering whether taxpayers, who fund Medicaid, the United States health program for eligible individuals and families with low incomes and resources, should pay for the unapproved medicines.

According to Herb Kuhn, Acting Deputy Administrator, Centers for Medicare and Medicaid Services, the problem is serious and has to be analyzed closely so as to be fixed. “It raises several questions, not only in terms of safety, but the effectiveness of the program to ensure beneficiaries are getting the right services.”