Spending Soars On Medication At New Mexico State Agencies

SANTA FE, N.M. (AP) — Legislative analysts say spending on prescription medication by New Mexico state agencies is rising quickly as insurance coverage expands under Medicaid and demands for specialty drugs are met. A report released Wednesday by the Legislative Finance Committee finds that state agencies spent $680 million on prescription drugs during the most recent budget year. That represents a 54 percent increase from two years ago. Much of the spending increase can be attributed to New Mexico's rapid expansion of Medicaid health coverage for the poor and disabled. Medicaid costs are paid for largely by the federal government. Increased spending also is linked to high-priced specialty drugs for complex conditions and rare diseases. The state's Medicaid program spent almost $66 million on drugs for 900 people with hepatitis C between 2014 and 2016.