A study found states are missing an opportunity for savings in Medicaid by not following the World Health Organization's Essential Medicines List, according to a University of California, San Francisco report.
Researchers found a high degree of variation among states' Preferred Drug Lists. In addition, the states' lists are not aligned with the WHO's list, which is evidence-based and updated biannually. A 2007 survey by the United Nations' health organization found that of 151 countries surveyed, the United States is among only 20 that do not use the WHO Essential Medicines List to create their national formulary.
The study showed that although many states' lists included medications from the WHO's list, they also included other medications that are more costly and potentially less effective and safe. For instance, many of the medications unique to the states' lists were nongenerics, which are typically more expensive than generic drugs. While 76 percent of the WHO list includes generics, only 56 percent of the states' Preferred Drug Lists did.
Prescription drug benefits account for the second-largest spending category for Medicaid, according to the report. The researchers suggest Medicaid could achieve significant savings and improve medications' safety and effectiveness by using the WHO's list to standardize the Preferred Drug Lists.
The study will be published in the American Journal of Public Health.
Read the University of California, San Francisco report on Medicaid's Preferred Drug Lists.
Related Articles on Medicaid Spending:
Washington State Seeks Federal Approval of Medicaid Exemptions
Florida Lawmakers Block Medicaid Bill That Would Have Cut $123M From Hospitals
17 States Launch Medicaid EHR Incentive Programs
Researchers found a high degree of variation among states' Preferred Drug Lists. In addition, the states' lists are not aligned with the WHO's list, which is evidence-based and updated biannually. A 2007 survey by the United Nations' health organization found that of 151 countries surveyed, the United States is among only 20 that do not use the WHO Essential Medicines List to create their national formulary.
The study showed that although many states' lists included medications from the WHO's list, they also included other medications that are more costly and potentially less effective and safe. For instance, many of the medications unique to the states' lists were nongenerics, which are typically more expensive than generic drugs. While 76 percent of the WHO list includes generics, only 56 percent of the states' Preferred Drug Lists did.
Prescription drug benefits account for the second-largest spending category for Medicaid, according to the report. The researchers suggest Medicaid could achieve significant savings and improve medications' safety and effectiveness by using the WHO's list to standardize the Preferred Drug Lists.
The study will be published in the American Journal of Public Health.
Read the University of California, San Francisco report on Medicaid's Preferred Drug Lists.
Related Articles on Medicaid Spending:
Washington State Seeks Federal Approval of Medicaid Exemptions
Florida Lawmakers Block Medicaid Bill That Would Have Cut $123M From Hospitals
17 States Launch Medicaid EHR Incentive Programs