Medicaid prescription drug spending increased by 47% from FY 2017 to FY 2022, rising from $29.8 billion to $43.8 billion, despite drug usage remaining below 2017 levels. Rebates reduced net Medicaid spending to about half, favoring brand over generic drugs. Despite Medicaid enrollment reaching historic levels during the pandemic, prescription drug usage remained low. States continue to take measures to reduce rising prescription drug costs, with over two-thirds implementing new initiatives focused on drug cost containment. However, the potential cancellation of pandemic continuous enrollment provisions could further impact spending and usage trends.
A division of United Healthcare, Change Healthcare, is dealing with the fallout of a cyber attack. This has heavily impacted the healthcare industry, affecting transactions