Can restrictions on reimbursement for anti-ulcer drugs decrease medicaid pharmacy costs without increasing hospitalizations?

Objective. To examine the impact of a policy restricting reimbursement for Medicaid anti-ulcer drugs on anti-ulcer drug use and peptic-related hospita lizations. Data Sources/Study Setting. In addition to U.S. Census Bureau data, all of the following from Florida: Medicaid anti-ulcer drug claims data, 1989-1993 ; Medicaid eligibility data, 1989-1993; and acute care nonfederal hospital discharge abstract data (Medicaid and non-Medicaid), 1989-1993. Study Design. In this observational study, a Poisson multiple regression mo del was used to compare changes, after policy implementation, in Medicaid r eimbursement for prescription anti-ulcer drugs as well as hospitalization r ates between pre- and post-implementation periods in Medicaid versus non-Me dicaid patients hospitalized with peptic ulcer disease. Principal Findings. Following policy implementation, the rate of Medicaid r eimbursement for anti-ulcer drugs decreased 33 percent (p <.001). No associ ated increase occurred in the rate of Medicaid peptic-related hospitalizati ons. Conclusions. Florida's policy restricting Medicaid reimbursement for anti-u lcer drugs was associated with a substantial reduction in outpatient anti-u lcer drug utilization without any significant increase in the rate of hospi talization for peptic-related conditions.