California, New York, Ohio Account for 26% of National Medicaid Drug Spend in FY 2024
California, New York, and Ohio led all states in gross Medicaid prescription drug spending in fiscal year 2024, representing more than a quarter of national expenditures, according to a KFF analysis of federal data. The figures reflect gross spending before manufacturer rebates on covered outpatient drugs under the Medicaid Drug Rebate Program. The data provides a state-by-state breakdown of prescription drug costs, highlighting geographic variation in Medicaid pharmacy spending patterns. This information is relevant for managed care organizations operating in multiple states to benchmark their pharmacy spending and assess market-specific cost drivers.
State-level pharmacy spending benchmarks inform MCO formulary strategies, capitation rate negotiations, and market entry decisions in high-spend states where pharmacy costs significantly impact plan margins.
Pharmacy · Managed Care · Finance
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