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Tobacco Control, Medicaid Coverage, and the Demand for Smoking Cessation Drugs

Author

Listed:
  • Michael R. Richards

    (Department of Health Policy, Vanderbilt University)

  • Joachim Marti

    (Centre for Health Policy, Imperial College London)

  • Johanna Catherine Maclean

    (Department of Economics, Temple University, NBER, and IZA)

  • Jason Fletcher

    (La Follette School of Public Affairs, University of Wisconsin–Madison, and NBER)

  • Donald Kenkel

    (Department of Economics, Department of Policy Analysis and Management, Cornell University, and NBER)

Abstract

To date, there has been limited research on what drives demand for smoking cessation products, especially pharmaceutical interventions. In this study, we use the near-universe of smoking cessation pharmaceutical prescriptions (1999–2012) to estimate the demand response to several anti-smoking policies (cigarette taxes, smoking bans, and Medicaid benefits). Our differences-in-differences estimates suggest an increase of 20 prescriptions per 10,000 persons following the introduction of Medicaid coverage, while taxes and bans demonstrate a less clear impact at the state level. Consumers appear sensitive to out-of-pocket cessation medication costs, which has relevance to recent Affordable Care Act insurance expansions and coverage regulations.

Suggested Citation

  • Michael R. Richards & Joachim Marti & Johanna Catherine Maclean & Jason Fletcher & Donald Kenkel, 2017. "Tobacco Control, Medicaid Coverage, and the Demand for Smoking Cessation Drugs," American Journal of Health Economics, University of Chicago Press, vol. 3(4), pages 528-549, Fall.
    • Handle: RePEc:ucp:amjhec:v:3:y:2017:i:4:p:528-549
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    Cited by:

    1. Maclean Johanna Catherine & Cook Benjamin & Carson Nicholas & Pesko Michael F, 2019. "Public Health Insurance and Prescription Medications for Mental Illness," The B.E. Journal of Economic Analysis & Policy, De Gruyter, vol. 19(1), pages 1-25, January.
    2. Lingxiao Wang & Yuqing Zheng & Steven C. Buck, 2021. "How does the affordable care act Medicaid expansion affect cigarette consumption?—The mechanism and heterogeneity," Journal of Consumer Affairs, Wiley Blackwell, vol. 55(3), pages 763-791, September.

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    More about this item

    Keywords

    smoking; smoking cessation medication; health insurance; Medicaid; anti-smoking policy;
    All these keywords.

    JEL classification:

    • H2 - Public Economics - - Taxation, Subsidies, and Revenue
    • H4 - Public Economics - - Publicly Provided Goods
    • I1 - Health, Education, and Welfare - - Health
    • I3 - Health, Education, and Welfare - - Welfare, Well-Being, and Poverty

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