The Office of the Inspector General (OIG) just released a report on Medicaid spending for 10 selected diabetes and 2 weight loss drugs which showed that spending substantially increased from $1.5 billion in 2019 to $9.4 billion in 2023 (a 540% increase). From 2019 to 2023, Medicaid gross spending increased by 506% for 10 selected diabetes drugs and by 4,938% for 2 selected weight loss drugs. The OIG estimated that Medicaid gross spending on these 12 drugs accounted for approximately 9% of all Medicaid spending on covered outpatient prescription drugs in 2023. If the annual percentage increase in gross spending on the 12 selected drugs continued at a rate of 47%, the smallest annual rate of increase observed during our audit period, it could potentially amount to over $29 billion in Medicaid spending on these drugs in 2026.
The Medicaid program provides medical assistance to certain low-income individuals and individuals with disabilities. The Federal and State Governments jointly fund and administer the Medicaid program. At the Federal level, CMS administers the program. Each State administers its Medicaid program in accordance with a CMS-approved State plan. Although each State has considerable flexibility in designing and operating its Medicaid program, it must comply with applicable Federal requirements. These increases could have a substantial impact on the plans. I am keeping track of this topic because the majority of patients with chronic wounds are obese and/or diabetic.
Here are a few selected figures from the report:
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Dr. Fife is a world renowned wound care physician dedicated to improving patient outcomes through quality driven care. Please visit my blog at CarolineFifeMD.com and my Youtube channel at https://www.youtube.com/c/carolinefifemd/videos
The opinions, comments, and content expressed or implied in my statements are solely my own and do not necessarily reflect the position or views of Intellicure or any of the boards on which I serve.
