What is Driving the ADAP Crisis?
• Inadequate federal funding. ADAP has not received adequate funding increases from Congress the past few years. While ADAP appropriations increased by 12 percent from 2000 to 2001, the number of clients increased by 10 percent and the cost of drugs increased by 16 percent during the same period. ADAPs cannot keep pace with rising costs and service demands at the current funding level. • Inadequate state funding. Sixteen states do not contribute at all to ADAP and others provide inadequate contributions. Continued weakness in the national economy suggests that additional funding from states that have had more generous programs may be frozen or even scaled back. • Increases in drug prices. Monthly drug expenditures by ADAPs rose by 320 percent from 1996 to 2001. Some of this was due to adding additional drugs to formularies, but much of the increase reflects steeper purchase prices. Several drug companies introduced sharp price hikes at the beginning of 2002, although some have since an
