What Drives Spending and Utilization on Medicaid Drug Benefits in States?
Issue Brief
With the approval of new specialty drugs, such as the Hepatitis C treatments Sovaldi and Harvoni, states are mindful that the cost the Medicaid prescription drug benefit could increase. To achieve savings, and improve management and health outcomes, it is important to understand which drugs are most frequently prescribed and which drive spending. Using state drug utilization data provided through the Medicaid Drug Rebate Program, as well as an industry drug database, this issue brief examines trends in prescriptions and spending before rebates, and places findings in the context of policy discussion.