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Related Experiment Videos

Interest groups and state Medicaid drug programs.

Etienne E Pracht1, William J Moore

  • 1Department of Health Policy and Management, University of South Florida, USA.

Journal of Health Politics, Policy and Law
|April 23, 2003
PubMed
Summary
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State Medicaid policies significantly influence drug spending and recipient numbers. Interest groups impact reimbursement rates, affecting overall program size and potentially increasing disparities in healthcare access.

Area of Science:

  • Health Economics
  • Public Policy
  • Pharmaceutical Policy

Background:

  • State Medicaid programs exhibit considerable variation in pharmaceutical policies.
  • Current policies may exacerbate existing disparities in healthcare access and spending.

Purpose of the Study:

  • To analyze the interplay between Medicaid reimbursement rates, recipient numbers, and per-recipient expenditures.
  • To investigate the influence of interest groups on state pharmaceutical policies.

Main Methods:

  • Estimation of a simultaneous equations model.
  • Analysis of interactions between reimbursement rates, recipients per capita, and expenditures per recipient.

Main Results:

  • Interest groups positively impact pharmacy reimbursement rates.

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  • Reimbursement rates influence pharmacy participation and drug utilization/expenditure patterns.
  • A significant inverse relationship exists between per-recipient expenditures and program size.
  • Conclusions:

    • State Medicaid pharmaceutical programs show substantial policy variation.
    • Current policies may lead to widening disparities in program outcomes and access.