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Drug Policy Monitor examines the value of pharmaceuticals within America’s health care system. This newsletter looks at a variety of topics including drug access and reimbursement in Medicare and Medicaid programs.

Hospital and nursing home spending accounts for more than half of overall Medicaid spending growth.

As lawmakers struggle with finding ways to extend prescription drug benefits through Medicare or Medicaid many question whether the costs associated with improving prescription drug access are a worthwhile investment in the health care system. In fact, prescription drugs are one of the most cost-effective components of health care. New medicines that improve the quality of life of patients can also play a role in managing overall health costs by replacing or avoiding other more costly interventions such as hospitalizations and nursing home admissions.