Medicaid Prescription Drug Coverage

posted by AHIP

on August 28, 2019


Americans with Medicaid have access to free or low-cost prescription drugs to treat illnesses and help them maintain their health. Prescription drugs are often the front-line tools for managing chronic conditions and acute illnesses, so drug coverage is an important part of the continuum of care. Although people with Medicaid are protected from the high costs of many prescription drugs, Medicaid drug spending has increased significantly in recent years. This is due largely to the rising cost of specialty drugs.1 Medicaid spending on prescription drugs is driven both by drug pricing dynamics that impact the whole health care system, and Medicaid-specific issues. This spending growth is a point of concern for state Medicaid programs and the federal government.

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