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Do State Cost Control Policies Reduce Medicaid Prescription Drug Spending?

Author
Simon, Kosali
Abstract
We present the first systematic analysis of state policies limiting prescription
drug access under Medicaid during 1990–2004, documenting their impact
on states’Medicaid prescription spending growth.We see substantial variation
in the number and type of policies used by states, but a clear upward trend in restrictions
over time. Analysis of state level annual spending growth shows that
these restrictions have in general helped contain Medicaid prescription drug
costs and that some approaches, such as the use of preferred drug lists (PDLs)
and tiered copayment systems, may have been more effective than others.
Date Issued
2009Subject
Policy Analysis and Management
Previously Published As
Risk Management and Insurance Review, 2009, Vol. 12, No. 1, 39-66
Type
article