Nearly a quarter of U.S. children use at least one prescription drug a month, most commonly treating such conditions as asthma, attention deficit hyperactivity disorder, and infections. Medicaid guarantees that enrolled children who need drugs receive them without any financial barriers, while some in the Children’s Health Insurance Program have a modest copayment.

This report, the third in a series on the Future of Children’s Health Coverage, explores the types of medication children are mostly likely to need, the fiscal impact of rising drug costs on state and local governments and the limits that some states and managed-care organizations place on drug availability.