Pricey medications cause spike in Idaho Medicaid costs - Insurance News | InsuranceNewsNet

InsuranceNewsNet — Your Industry. One Source.™

Sign in
  • Subscribe
  • About
  • Advertise
  • Contact
Home Now reading Newswires
Topics
    • Advisor News
    • Annuity Index
    • Annuity News
    • Companies
    • Earnings
    • Fiduciary
    • From the Field: Expert Insights
    • Health/Employee Benefits
    • Insurance & Financial Fraud
    • INN Magazine
    • Insiders Only
    • Life Insurance News
    • Newswires
    • Property and Casualty
    • Regulation News
    • Sponsored Articles
    • Washington Wire
    • Videos
    • ———
    • About
    • Advertise
    • Contact
    • Editorial Staff
    • Newsletters
  • Exclusives
  • NewsWires
  • Magazine
  • Newsletters
Sign in or register to be an INNsider.
  • AdvisorNews
  • Annuity News
  • Companies
  • Earnings
  • Fiduciary
  • Health/Employee Benefits
  • Insurance & Financial Fraud
  • INN Exclusives
  • INN Magazine
  • Insurtech
  • Life Insurance News
  • Newswires
  • Property and Casualty
  • Regulation News
  • Sponsored Articles
  • Video
  • Washington Wire
  • Life Insurance
  • Annuities
  • Advisor
  • Health/Benefits
  • Property & Casualty
  • Insurtech
  • About
  • Advertise
  • Contact
  • Editorial Staff

Get Social

  • Facebook
  • X
  • LinkedIn
Health/Employee Benefits News
Newswires RSS Get our newsletter
Order Prints
June 12, 2023 Newswires
Share
Share
Post
Email

Pricey medications cause spike in Idaho Medicaid costs

Idaho Press-Tribune

Originally published June 9 on IdahoCapitalSun.com.

Lawmakers in charge of state budgets this year grilled officials from the Idaho Department of Health and Welfare on why Medicaid spending had ballooned to $4.7 billion a year.

The culprit wasn’t a surge in emergency room visits. It wasn’t a slew of back surgeries or hip replacements. It wasn’t even just because Idaho voters decided in 2018 to open up Medicaid to low-income adults who previously did not qualify for the government health insurance program.

One of the main drivers, state officials explained, was the cost of prescription drugs. That made up the largest and fastest growing bucket of Medicaid spending, Health and Welfare Director Dave Jeppesen told the Idaho Legislature in the 2023 session.

“You may recall that, just a couple of years ago, a cure for hepatitis C was developed. The amazing thing is it’s a cure — hepatitis C could go away permanently,” Jeppesen said in a Medicaid budget hearing. “That was $300,000 a person for that drug. And so, you get these kinds of specialty drugs that are miracle drugs that are just really, really high priced.”

Jeppesen explained that Idaho isn’t an outlier in how much it’s spending for medications.

“We’ve had conversations with our fellow Medicaid programs across the country. They’re all facing the same issue,” he told legislators.

In response to a data request, the Idaho Department of Health and Welfare  provided the Idaho Capital Sun with a detailed breakdown of prescription drug spending for Idaho Medicaid over the past decade.

The data — Idaho Medicaid’s 25 highest drug expenditures — illustrated how a few medications have affected the cost of health care.

HUMIRA, LATUDA, OZEMPIC AND MORE: DRUGS TO TREAT CHALLENGING DISEASES

For most of the past decade, the state’s annual spending for the 25 biggest prescription-drug cost drivers was in the $80 million to $90 million range. But in 2020, it began a steep climb: $132 million in 2020, $197 million in 2021 and $252 million in 2022.

The major contributors to that increase:

an injectable monoclonal antibody used to treat autoimmune disorders like rheumatoid arthritis, medications to treat schizophrenia and bipolar disorder; and new to the Top 25 list in 2020, the diabetes drug Ozempic, which went from costing Idaho Medicaid about $1.03 million in the fall of 2021, to costing the program about $6.25 million in the fall of 2022.

The cost of insulin was reflected in Idaho Medicaid spending, too — with two insulin drugs racking up a tab of more than $5 million a year since 2014.

One factor that couldn’t be teased out from the data: How much of these prescription drugs were for Idahoans who had guaranteed Medicaid coverage between March 2020 and now?

More than 150,000 people who were on Idaho Medicaid during that three-year period had pandemic-related legal protections that kept them from losing Medicaid coverage.

About 67,000 of those had joined Idaho Medicaid as part of the expansion, according to a January presentation by Idaho Medicaid Division Administrator Juliet Charron to the Legislature. They were using health care less than other Idaho adults who were on Medicaid, Charron said.

Now, the state has begun to resume disenrolling people from Medicaid, unless they respond to notices and prove they are eligible to keep the health coverage.

Tens of thousands of Idaho Medicaid recipients are now losing coverage because they did not respond to notifications, the Sun previously reported.

That means when they go to pick up their next prescription refill, it won’t be paid for by Medicaid.

Older

Insurers simplify contracts and speed up digital response to claims

Newer

Ahead of 2008 flood anniversary, Iowa lawmaker introduces flood mitigation bill

Advisor News

  • Study asks: How do different generations approach retirement?
  • LTC: A critical component of retirement planning
  • Middle-class households face worsening cost pressures
  • Metlife study finds less than half of US workforce holistically healthy
  • Invigorating client relationships with AI coaching
More Advisor News

Annuity News

  • Jackson Financial ramps up reinsurance strategy to grow annuity sales
  • Insurer to cut dozens of jobs after making splashy CT relocation
  • AM Best Comments on Credit Ratings of Teachers Insurance and Annuity Association of America Following Agreement to Acquire Schroders, plc.
  • Crypto meets annuities: what to know about bitcoin-linked FIAs
  • Trademark Application for “EMPOWER MY WEALTH” Filed by Great-West Life & Annuity Insurance Company: Great-West Life & Annuity Insurance Company
More Annuity News

Health/Employee Benefits News

  • New Hampshire Built Its Health Insurance Stability Before the Storm And That Choice Paid Off – Roger Sevigny
  • The new frontier in obesity care for seniors
  • 30 DAYS, $1.8 MILLION AND ZERO BILLS PASSED: KDP STATEMENT ON WASTEFUL GOP-LED GENERAL ASSEMBLY
  • New Vaccines Findings from University of California Riverside Outlined (Emergency Department Survey of Vaccination Knowledge, Vaccination Coverage, and Willingness To Receive Vaccines In an Emergency Department Among Underserved Populations – …): Immunization – Vaccines
  • Researchers at George Washington University School of Medicine and Health Sciences Target Artificial Intelligence (Health Insurance Portability and Accountability Act Liability in the Age of Generative Artificial Intelligence): Artificial Intelligence
More Health/Employee Benefits News

Life Insurance News

  • International life insurer to lay off over 100 in Hartford office
  • Puritan Life SVP Dierdre Woodruff named Life Insurers Council board chair
  • National Life Group Selects FINEOS AdminSuite to Transform Living Benefit and Life Insurance Claims Operations
  • Securian Financial Promotes Kent Peterson to Senior Vice President for Institutional Retirement Solutions
  • Lincoln Financial Announces Launch of Lincoln WealthProtector℠ IUL, Strengthening Its Elite IUL Portfolio With a New Protection‑Focused Solution
Sponsor
More Life Insurance News

- Presented By -

Top Read Stories

More Top Read Stories >

NEWS INSIDE

  • Companies
  • Earnings
  • Economic News
  • INN Magazine
  • Insurtech News
  • Newswires Feed
  • Regulation News
  • Washington Wire
  • Videos

FEATURED OFFERS

Elevate Your Practice with Pacific Life
Taking your business to the next level is easier when you have experienced support.

LIMRA’s Distribution and Marketing Conference
Attend the premier event for industry sales and marketing professionals

Get up to 1,000 turning 65 leads
Access your leads, plus engagement results most agents don’t see.

What if Your FIA Cap Didn’t Reset?
CapLock™ removes annual cap resets for clearer planning and fewer surprises.

Press Releases

  • Hexure Launches First Fully Digital NIGO Resubmission Workflow to Accelerate Time to Issue
  • RFP #T25221
  • LIDP Named Top Digital-First Insurance Solution 2026 by Insurance CIO Outlook
  • Finseca & IAQFP Announce Unification to Strengthen Financial Planning
  • Prosperity Life Group Appoints Nick Volpe as Chief Technology Officer
More Press Releases > Add Your Press Release >

How to Write For InsuranceNewsNet

Find out how you can submit content for publishing on our website.
View Guidelines

Topics

  • Advisor News
  • Annuity Index
  • Annuity News
  • Companies
  • Earnings
  • Fiduciary
  • From the Field: Expert Insights
  • Health/Employee Benefits
  • Insurance & Financial Fraud
  • INN Magazine
  • Insiders Only
  • Life Insurance News
  • Newswires
  • Property and Casualty
  • Regulation News
  • Sponsored Articles
  • Washington Wire
  • Videos
  • ———
  • About
  • Advertise
  • Contact
  • Editorial Staff
  • Newsletters

Top Sections

  • AdvisorNews
  • Annuity News
  • Health/Employee Benefits News
  • InsuranceNewsNet Magazine
  • Life Insurance News
  • Property and Casualty News
  • Washington Wire

Our Company

  • About
  • Advertise
  • Contact
  • Meet our Editorial Staff
  • Magazine Subscription
  • Write for INN

Sign up for our FREE e-Newsletter!

Get breaking news, exclusive stories, and money- making insights straight into your inbox.

select Newsletter Options
Facebook Linkedin Twitter
© 2026 InsuranceNewsNet.com, Inc. All rights reserved.
  • Terms & Conditions
  • Privacy Policy
  • InsuranceNewsNet Magazine

Sign in with your Insider Pro Account

Not registered? Become an Insider Pro.
Insurance News | InsuranceNewsNet