Average Drug Shortage Duration Reaches 5.3 Years in 2025
A new analysis shows the average drug shortage in 2025 has lasted 5.3 years, up from 4.3 years in 2024. The extended duration reflects chronic supply chain instability affecting generic medications, many of which are used extensively in Medicaid populations. The analysis highlights growing challenges in maintaining formulary stability and managing therapeutic alternatives. For Medicaid managed care plans, prolonged shortages complicate prior authorization processes, increase member access issues, and drive utilization of more expensive therapeutic substitutes.
Longer drug shortages force Medicaid MCOs to manage more frequent formulary disruptions, therapeutic substitutions, and member grievances while absorbing cost increases from alternative medications under fixed capitation rates.
Pharmacy · Managed Care
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