Prescription Drugs

Payments for Medicaid outpatient prescription drugs account for about 5 percent of all Medicaid spending. Inappropriate marketing and prescribing of new high-cost drugs undermines quality of care and drives up costs. Additionally, many state Medicaid programs pay too high a price for the drugs their beneficiaries use. The policies in this category explore strategies for increasing the cost-effectiveness of prescription drug spending in Medicaid.

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