ABSTRACT
This paper examines variations in Medicaid use and spending for central nervous system drugs (anxiolytics, antidepressants, antipsychotics, and hypnotics) by eligibility group in 10 states in 1997. The aged and adults used antidepressants most frequently, while the disabled and children used antipsychotics most frequently. For both payment per prescription and payment per recipient, the aged, the disabled, and children had the highest amounts for antipsychotics, whereas adults had the highest amounts for antidepressants. Examining Medicaid drug use and spending in this way provides a basis for future studies that will address quality of care and patient outcome issues.