Tiered co-payments, pricing, and demand in reference price markets for pharmaceuticals
| Autor: | Annika Herr, Moritz Suppliet |
|---|---|
| Přispěvatelé: | Department of Economics, Research Group: Economics |
| Jazyk: | angličtina |
| Rok vydání: | 2017 |
| Předmět: |
Prescription Drugs
firm behavior Moral hazard Psychological pricing price elsaticity Mid price Monetary economics Price discrimination reference pricing Microeconomics cost-sharing Demand curve Germany 0502 economics and business Deductibles and Coinsurance Economics 050207 economics health care economics and organizations 050205 econometrics drug prices Price elasticity of demand Insurance Health Health Policy 05 social sciences Commerce Public Health Environmental and Occupational Health Patient Preference regulation humanities co-payments health insurance Cost sharing demand model Limit price |
| Zdroj: | Journal of Health Economics, 56, 19-29. Elsevier Science BV |
| ISSN: | 0167-6296 |
| Popis: | Health insurance companies curb price-insensitive behavior and the moral hazard of insureds by means of cost-sharing, such as tiered co-payments or reference pricing in drug markets. This paper evaluates the effect of price limits - below which drugs are exempt from co-payments - on prices and on demand. First, using a difference-in-differences estimation strategy, we find that the new policy decreases prices by 5 percent for generics and increases prices by 4 percent for brand-name drugs in the German reference price market. Second, estimating a nested-logit demand model, we show that consumers appreciate co-payment exempt drugs and calculate lower price elasticities for brand-name drugs than for generics. This explains the different price responses of brand-name and generic drugs and shows that price-related co-payment tiers are an effective tool to steer demand to low-priced drugs. |
| Databáze: | OpenAIRE |
| Externí odkaz: |
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