How Does Prescription Drug Spending and Use Compare Across Large Employer Plans, Medicare Part D, and Medicaid?

(By Juliette Cubanski, Matthew Rae, Katherine Young, and Anthony Damico for Kaiser Family Foundation)

Prescription drug costs are a pressing concern for both consumers and policymakers. Rising drug prices affect patients’ out-of-pocket costs as well as the budgets of private and public payers, though the challenges vary by payer. This analysis compares prescription drug spending and use in large private employer plans, Medicare Part D, and Medicaid, based primarily on claims data by payer, which does not account for rebates. Rebates differ by payer, and are estimated to be larger for Medicaid than Medicare Part D or private employers.  Continue reading analysis here…

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