Changes in Medicaid prescription volume and use in the wake of Medicare Part D implementation

Implementation of the Medicare drug benefit resulted in a major shift of prescription drug spending from Medicaid to Medicare. Data indicate that Medicaid programs experienced substantial changes in the volume and types of prescriptions used by enrollees. Medicaid prescription volume and total payments to pharmacies dropped by almost 50 percent in 2006. Generic dispensing rates increased 4.6 percentage points nationally. The mix of drug classifications also shifted, reflecting the younger makeup of the population that remains eligible for Medicaid prescription drug benefits. Still, patterns of use reflect the major mental and physical health needs of Medicaid enrollees.