Budget-Busting Drugs Threated By Expiring Patents
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While some economists have declared the recession over, that announcement may not soothe the fiscal predicaments of those affected by state budgets. States often experience ongoing financial difficulties for up to two years after a recession has technically ended.
State Medicaid and pharmacy directors, as well as Medicaid managed care organizations, continue the struggle to balance budgets while maintaining high- quality care. Now, they face an event that can be viewed as both a boon and an added complication — the unprecedented number of brand name drugs with patents expiring during the next five years.
As the pharmaceutical companies lose their exclusive rights to manufacture and distribute these medications, we expect the widespread availability of lower-cost generic formulations to generate changes in providers’ prescribing habits and payers’ approaches to formulary management.
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