Friday, August 13, 2010

Overspending on many drugs in Medicaid

I recently found the white paper Overspending on Multi-Source Drugs in Medicaid. It looks at 2009 Medicaid drug data that shows that in the case of multi-source drugs, there are often frequently more sales on the more costly brands.

According to the article at the American Enterprise Insitute: Because there is usually a large price differential between brand and generic drugs, a high generic substitution rate ensures cost-effectiveness in the Medicaid drug program without engaging in policies that affect clinical decisions.

Read the white paper here:

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