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

David M. Cromwell, Eric B. Bass, Earl P. Steinberg, Yutaka Yasui, William J. Ravich, Thomas R. Hendrix, Susan F. McLeod, Richard D. Moore

Research output: Contribution to journalArticlepeer-review

16 Scopus citations


Objective. To examine the impact of a policy restricting reimbursement for Medicaid anti-ulcer drugs on anti-ulcer drug use and peptic-related hospitalizations. 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 model was used to compare changes, after policy implementation, in Medicaid reimbursement for prescription anti-ulcer drugs as well as hospitalization rates between pre- and postimplementation periods in Medicaid versus non-Medicaid patients hospitalized with peptic ulcer disease. Principal Findings. Following policy implementation, the rate of Medicaid reimbursement for anti-ulcer drugs decreased 33 percent (p<.001). No associated increase occurred in the rate of Medicaid peptic-related hospitalizations. Conclusions. Florida's policy restricting Medicaid reimbursement for anti-ulcer drugs was associated with a substantial reduction in outpatient anti-ulcer drug utilization without any significant increase in the rate of hospitalization for peptic-related conditions.

Original languageEnglish (US)
Pages (from-to)1593-1610
Number of pages18
JournalHealth services research
Issue number6
StatePublished - Feb 1999


  • Hospitalization
  • Medicaid reimbursement policy
  • Peptic ulcer disease
  • Pharmaceutical claims

ASJC Scopus subject areas

  • Health Policy


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