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- W2755718274 abstract "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." @default.
- W2755718274 created "2017-09-25" @default.
- W2755718274 creator A5036845895 @default.
- W2755718274 creator A5067806753 @default.
- W2755718274 date "2017-12-01" @default.
- W2755718274 modified "2023-10-10" @default.
- W2755718274 title "Tiered co-payments, pricing, and demand in reference price markets for pharmaceuticals" @default.
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- W2755718274 doi "https://doi.org/10.1016/j.jhealeco.2017.08.008" @default.
- W2755718274 hasPubMedId "https://pubmed.ncbi.nlm.nih.gov/28964941" @default.
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