Medicaid Drug Utilization Is Down, But Spending Continues To Climb

As Medicaid enrollment climbed to historic levels amid the COVID-19 pandemic, the number of prescriptions per enrollee dropped to 9.4, while net spending per prescription rose to $58, our infographic details. 90-day scripts and higher launch prices could be driving the trends.

drug shopping basket
The spending landscape could shift after Medicaid redeterminations run their course. • Source: Shutterstock

Medicaid drug spending shows no signs of slowing despite a drop in prescriptions, according to new research from KFF. Net spending on prescription drugs grew 47% to $43.8 billion from fiscal year (FY) 2017 to 2022. The average Medicaid enrollee had 11.4 prescriptions in FY 2017, with a net spend of $39 per prescription. In FY 2022, the number of prescriptions per enrollee dropped to 9.4, while net spending per prescription rose to $58. 

Meanwhile, Medicaid enrollment climbed to historic levels amid the COVID-19 pandemic, reaching 96.3 million lives in June 2023, according AIS’s Directory of Health Plans (DHP). With the end of the COVID-era continuous enrollment provision, states are now in the middle of a lengthy – and sometimes 

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