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How the Federal Government Can Help States Address Rising Prescription Drug Costs
States today struggle to fund health services for all their programs, including Medicaid, state employees, prisons, state university systems, and others. The rising cost of prescription drugs is a key factor in this struggle an estimated 25 percent of state budgets go to fund Medicaid, and state spending on Medicaid drugs alone increased 25 percent in 2014 and 14 percent in 2015. States operate in highly constrained budget environments, which require new and creative approaches to manage rapidly rising health care spending.
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