Do Pharmaceutical Prices Respond to Potential Patient Out-of-Pocket Expenses?
AbstractDespite the importance of patient insurance in the market for prescription pharmaceuticals, little is known about the impact of patient reimbursement on the pricing behavior of pharmaceutical firms. I examine the link between potential patient out-of-pocket expenses and pharmaceutical pricing using a unique policy experiment from Germany. Starting in 1989, a maximum reimbursement for a given medicine replaced a flat prescription fee. This change in reimbursement exposes the patient to the price of a prescribed product. Using a product-level panel dataset covering several therapeutic categories before and after the policy change, I find that producers significantly decrease prices after the change in potential patient out-of-pocket expenses. Price declines are most pronounced for brand-name products. Moreover, branded products that face more generic competitors reduce prices more.
Download InfoTo our knowledge, this item is not available for download. To find whether it is available, there are three options:
1. Check below under "Related research" whether another version of this item is available online.
2. Check on the provider's web page whether it is in fact available.
3. Perform a search for a similarly titled item that would be available.
Bibliographic InfoArticle provided by The RAND Corporation in its journal RAND Journal of Economics.
Volume (Year): 33 (2002)
Issue (Month): 3 (Autumn)
Contact details of provider:
Web page: http://www.rje.org
You can help add them by filling out this form.
CitEc Project, subscribe to its RSS feed for this item.
- Kaiser, Ulrich & Méndez, Susan J. & Rønde, Thomas & Ullrich, Hannes, 2013.
"Regulation of Pharmaceutical Prices: Evidence from a Reference Price Reform in Denmark,"
IZA Discussion Papers
7248, Institute for the Study of Labor (IZA).
- Ulrich Kaiser & Susan J. Méndez & Thomas Rønde & Hannes Ullrich, 2013. " Regulation of Pharmaceutical Prices: Evidence from a Reference Price Reform in Denmark," Working Papers 330, University of Zurich, Department of Business Administration (IBW).
- Chiara Bonassi & Laura Magazzini & Fabio Pammolli & Massimo Riccaboni & Nicola Carmine Salerno, 2007. "Il prezzo di riferimento nel quadro regolatorio del mercato farmaceutico," Working Papers 04-2007, Competitività Regole Mecati (CERM).
- Chebbi, Houssem Eddine & Boujelbene, Younes & Ayadi, Inès, 2008. "Investigating Generic and Brand Name Pharmaceutical’s Market Shares and Prices in Tunisia," Economics Papers from University Paris Dauphine 123456789/3608, Paris Dauphine University.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: ().
If references are entirely missing, you can add them using this form.