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Medicaid Drug Spending Analysis

In the US, prescription drug costs have been a growing concern. Rising drug prices limit patient access to necessary medications, putting their health at risk. It's estimated that nearly 30% of Americans cannot take their prescribed medication because they can't afford to, all while pharmaceutical companies continue to profit [1]. This analysis will focus on identifying drugs with the highest spending increases, highlighting top-earning pharmaceutical companies, and exploring how Medicaid spending patterns have changed over time and across companies.

  1. Which prescription drugs have seen the highest spending increases from 2018 to 2022?
  2. What are the top 5 pharmaceutical companies that received the most revenue from Medicaid drug spending in 2022?
  3. How does the total Medicaid spending per drug (2018-2022) compare across different companies?
  4. Can we predict which pharmaceutical companies will see the highest total Medicaid spending in the future (2025-2026) based on past spending data?

References

[1] M. Diener, “Drug prices and Shortages Jeopardize Patient Access to Quality Hospital Care: AHA News,” American Hospital Association | AHA News, https://www.aha.org/news/blog/2024-05-22-drug-prices-and-shortages-jeopardize-patient-access-quality-hospital-care. (accessed Jan. 30, 2025).

[2] “Medicaid Spending by Drug,” Centers for Medicare & Medicaid Services Data, https://data.cms.gov/summary-statistics-on-use-and-payments/medicare-medicaid-spending-by-drug/medicaid-spending-by-drug (accessed Feb. 2, 2025).

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