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Medicaid prescription drug spending in the 1990s: a decade of change.

Baugh DK, Pine PL, Blackwell S, Ciborowski G - Health Care Financ Rev (2004)

Bottom Line: From 1990 to 2000, Medicaid drug spending increased from $4.4 billion to over $20 billion, an average annual increase of 16.3 percent.Disabled persons experienced an even greater 20 percent average annual increase.By drug category in 1997 (for 29 States), the highest spending amount was for central nervous system (CNS) drugs, accounting for 17 percent of total Medicaid drug spending.

View Article: PubMed Central - PubMed

Affiliation: Centers for Medicare & Medicaid Services, 7500 Security Boulevard, C3-20-17, Baltimore, MD 21244, USA. dbaugh@cms.hhs.gov

ABSTRACT
Medicaid spending increased dramatically during the 1990s, driven in part by spending for prescription drugs. From 1990 to 2000, Medicaid drug spending increased from $4.4 billion to over $20 billion, an average annual increase of 16.3 percent. Disabled persons experienced an even greater 20 percent average annual increase. By drug category in 1997 (for 29 States), the highest spending amount was for central nervous system (CNS) drugs, accounting for 17 percent of total Medicaid drug spending. These findings provide information on drug spending for dually eligible beneficiaries to policymakers as they seek to target cost-effective coverage and drug therapies.

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Medicaid Prescription Drug Payments1, Annual Increase, by Federal FYs: 1991-20001 Medicaid prescription drug payments are gross amounts prior to the receipt of rebates to the States by prescription drug manufacturers. Medicaid prescription drug payments include all payments for prescription drugs provided under an FFS setting (i.e., prescription drugs for which Medicaid paid a pharmacy claim). Since Medicaid pays a single premium to a prepaid plan for all covered services, it is not possible to identify prescription drug payment when they are covered by a prepaid plan. To this extent, Medicaid prescription drug payments, presented here, may understate total Medicaid payments for prescription drugs. Data are reported for the 50 States and the District of Columbia and exclude other Medicaid jurisdictions. Although Hawaii did not report for 2000, their 1999 data were used as an estimate for 2000.SOURCE: Centers for Medicare & Medicaid Services: Data from CMS Form-2082 and the Medicaid Statistical Information System, 1990-2000.
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f2-hcfr-25-3-005: Medicaid Prescription Drug Payments1, Annual Increase, by Federal FYs: 1991-20001 Medicaid prescription drug payments are gross amounts prior to the receipt of rebates to the States by prescription drug manufacturers. Medicaid prescription drug payments include all payments for prescription drugs provided under an FFS setting (i.e., prescription drugs for which Medicaid paid a pharmacy claim). Since Medicaid pays a single premium to a prepaid plan for all covered services, it is not possible to identify prescription drug payment when they are covered by a prepaid plan. To this extent, Medicaid prescription drug payments, presented here, may understate total Medicaid payments for prescription drugs. Data are reported for the 50 States and the District of Columbia and exclude other Medicaid jurisdictions. Although Hawaii did not report for 2000, their 1999 data were used as an estimate for 2000.SOURCE: Centers for Medicare & Medicaid Services: Data from CMS Form-2082 and the Medicaid Statistical Information System, 1990-2000.

Mentions: Total Medicaid payments for outpatient prescription drugs grew from $4.4 billion in 1990 to greater than $20 billion in 2000, an average annual increase of 16.3 percent (Figure 1). Large yearly increases were observed in 1991 (22.7 percent) and 1992 (24.7 percent), when the prescription drug rebate program was being implemented (Figure 2). After 1992, annual increases steadily declined through 1996. After 1996, annual increases grew steadily to 20.8 percent by 2000. Data from the CMS-64 confirm that prescription drug spending continued to increase at a high rate in 2001 and 2002 (20.0 and 18.9 percent, respectively).


Medicaid prescription drug spending in the 1990s: a decade of change.

Baugh DK, Pine PL, Blackwell S, Ciborowski G - Health Care Financ Rev (2004)

Medicaid Prescription Drug Payments1, Annual Increase, by Federal FYs: 1991-20001 Medicaid prescription drug payments are gross amounts prior to the receipt of rebates to the States by prescription drug manufacturers. Medicaid prescription drug payments include all payments for prescription drugs provided under an FFS setting (i.e., prescription drugs for which Medicaid paid a pharmacy claim). Since Medicaid pays a single premium to a prepaid plan for all covered services, it is not possible to identify prescription drug payment when they are covered by a prepaid plan. To this extent, Medicaid prescription drug payments, presented here, may understate total Medicaid payments for prescription drugs. Data are reported for the 50 States and the District of Columbia and exclude other Medicaid jurisdictions. Although Hawaii did not report for 2000, their 1999 data were used as an estimate for 2000.SOURCE: Centers for Medicare & Medicaid Services: Data from CMS Form-2082 and the Medicaid Statistical Information System, 1990-2000.
© Copyright Policy
Related In: Results  -  Collection

Show All Figures
getmorefigures.php?uid=PMC4194863&req=5

f2-hcfr-25-3-005: Medicaid Prescription Drug Payments1, Annual Increase, by Federal FYs: 1991-20001 Medicaid prescription drug payments are gross amounts prior to the receipt of rebates to the States by prescription drug manufacturers. Medicaid prescription drug payments include all payments for prescription drugs provided under an FFS setting (i.e., prescription drugs for which Medicaid paid a pharmacy claim). Since Medicaid pays a single premium to a prepaid plan for all covered services, it is not possible to identify prescription drug payment when they are covered by a prepaid plan. To this extent, Medicaid prescription drug payments, presented here, may understate total Medicaid payments for prescription drugs. Data are reported for the 50 States and the District of Columbia and exclude other Medicaid jurisdictions. Although Hawaii did not report for 2000, their 1999 data were used as an estimate for 2000.SOURCE: Centers for Medicare & Medicaid Services: Data from CMS Form-2082 and the Medicaid Statistical Information System, 1990-2000.
Mentions: Total Medicaid payments for outpatient prescription drugs grew from $4.4 billion in 1990 to greater than $20 billion in 2000, an average annual increase of 16.3 percent (Figure 1). Large yearly increases were observed in 1991 (22.7 percent) and 1992 (24.7 percent), when the prescription drug rebate program was being implemented (Figure 2). After 1992, annual increases steadily declined through 1996. After 1996, annual increases grew steadily to 20.8 percent by 2000. Data from the CMS-64 confirm that prescription drug spending continued to increase at a high rate in 2001 and 2002 (20.0 and 18.9 percent, respectively).

Bottom Line: From 1990 to 2000, Medicaid drug spending increased from $4.4 billion to over $20 billion, an average annual increase of 16.3 percent.Disabled persons experienced an even greater 20 percent average annual increase.By drug category in 1997 (for 29 States), the highest spending amount was for central nervous system (CNS) drugs, accounting for 17 percent of total Medicaid drug spending.

View Article: PubMed Central - PubMed

Affiliation: Centers for Medicare & Medicaid Services, 7500 Security Boulevard, C3-20-17, Baltimore, MD 21244, USA. dbaugh@cms.hhs.gov

ABSTRACT
Medicaid spending increased dramatically during the 1990s, driven in part by spending for prescription drugs. From 1990 to 2000, Medicaid drug spending increased from $4.4 billion to over $20 billion, an average annual increase of 16.3 percent. Disabled persons experienced an even greater 20 percent average annual increase. By drug category in 1997 (for 29 States), the highest spending amount was for central nervous system (CNS) drugs, accounting for 17 percent of total Medicaid drug spending. These findings provide information on drug spending for dually eligible beneficiaries to policymakers as they seek to target cost-effective coverage and drug therapies.

Show MeSH