State policy options to limit Medicaid expenditures by reducing prescription drug costs

Medicaid enrollment continues to rise as people lose employment and income in the COVID-19 recession, putting pressure on already-strained state budgets. The Center on Budget and Policy Priorities (CBPP) explores how states could reduce Medicaid costs without cutting benefits or provider reimbursement rates that might diminish access to care. CBPP researchers identify prescription drug costs as an area of opportunity for reducing Medicaid costs to states. Specifically, CBPP highlights states that are leveraging flexibility in federal law, which allows states a range of policy options for reducing costs, including requiring uniform generic substitution policies and considering new alternative payment models. #covid-19