Medicaid Spending On Accelerated Approvals ‘Outsized’ Relative To Use

A new study highlights a subset of high-cost drugs in Medicaid for which legal and policy tools may be available to manage spending growth.

Accelerated Approvals Burning Through Budgets? • Source: Alamy

Medicaid programs paid $2.2bn to $2.6bn on a net basis for drugs approved through the US Food and Drug Administration’s accelerated approval pathway from 2015 through 2019, representing between 6.4% to 9.1% of annual spending on all drugs over that period, according to an analysis in JAMA Health Forum.

Yet relative to all outpatient drugs covered by Medicaid, the use of drugs with accelerated approvals ranged from just 0.2% to 0.4% from 2015 through 2019 (1.3-2

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