The Article in Brief

Spending on prescription drugs is increasing at high rates in the United States as a whole, and at even higher rates in state Medicaid programs. In the North Carolina Medicaid program in the years 1998-2000, the major cause of the increase in drug costs was a rise in the number of prescriptions for new and more expensive medications. There is an important role for many newer and more expensive drugs, but that role must be made more clear. To help control rising spending on prescription drugs, the costs and benefits of possible treatments must be considered.