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Benefit Plan Design and Prescription Drug Utilization Among Asthmatics: Do Patient Copayments Matter?

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Author Info
William H. Crown
Ernst R. Berndt
Onur Baser
Stan N. Finkelstein
Whitney P. Witt
Abstract

Objective: The ratio of controller to reliever medication use has been proposed as a measure of treatment quality for asthma patients. In this study we examine the effects of plan level mean out-of-pocket asthma medication patient copayments and other features of benefit plan design on the use of controller medications alone, controller and reliever medications (combination therapy), and reliever medications alone. Methods: 1995-2000 MarketScan claims data were used to construct plan-level out-of-pocket copayment and physician/practice prescriber preference variables for asthma medications. Separate multinomial logit models were estimated for patients in fee-for-service (FFS) and non-FFS plans relating benefit plan design features, physician/practice prescribing preferences, patient demographics, patient comorbidities and county-level income variables to patient-level asthma treatment patterns. Results: We find that the controller reliever ratio rose steadily over 1995-2000, along with out-of-pocket payments for asthma medications, which rose more for controllers than for relievers. However, after controlling for other variables, plan level mean out-of-pocket copayments were not found to have a statistically significant influence upon patient-level asthma treatment patterns. On the other hand, physician practice prescribing patterns strongly influenced patient level treatment patterns. Conclusions: There is no strong statistical evidence that higher levels of out-of-pocket copayments for prescription drugs influence asthma treatment patterns. However, physician/practice prescribing preferences influence patient treatment.

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Paper provided by National Bureau of Economic Research, Inc in its series NBER Working Papers with number 10062.

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Date of creation: Nov 2003
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Handle: RePEc:nbr:nberwo:10062

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Find related papers by JEL classification:
D12 - Microeconomics - - Household Behavior - - - Consumer Economics: Empirical Analysis
I11 - Health, Education, and Welfare - - Health - - - Analysis of Health Care Markets

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  4. Blomqvist, Ake, 2001. "Does the economics of moral hazard need to be revisited? A comment on the paper by John Nyman," Journal of Health Economics, Elsevier, vol. 20(2), pages 283-288, March. [Downloadable!] (restricted)
  5. Marquis, M. Susan, 1985. "Cost-sharing and provider choice," Journal of Health Economics, Elsevier, vol. 4(2), pages 137-157, June. [Downloadable!] (restricted)
  6. Daniel Feenberg & Jonathan Skinner, 1992. "The Risk and Duration of Catastrophic Health Care Expenditures," NBER Working Papers 4147, National Bureau of Economic Research, Inc. [Downloadable!] (restricted)
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  7. François Bourguignon & Martin Fournier & Marc Gurgand, 2004. "Selection Bias Corrections Based on the Multinomial Logit Model: Monte-Carlo Comparisons," DELTA Working Papers 2004-20, DELTA (Ecole normale supérieure). [Downloadable!]
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  8. Alan, Sule & Crossley, Thomas F. & Grootendorst, Paul & Veall, Michael R., 2002. "The effects of drug subsidies on out-of-pocket prescription drug expenditures by seniors: regional evidence from Canada," Journal of Health Economics, Elsevier, vol. 21(5), pages 805-826, September. [Downloadable!] (restricted)
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  1. Avi Dor & William Encinosa, 2004. "Does Cost Sharing Affect Compliance? The Case of Prescription Drugs," NBER Working Papers 10738, National Bureau of Economic Research, Inc. [Downloadable!] (restricted)
  2. Beatriz González López-Valcárcel & Anselmo López Cabañas & Antonio Cabeza Mora & José Antonio Díaz Berenguer & Vicente Ortún & Fayna Álamo Santana, 2005. "Drug Utilization Studies and Data Registries in Primary Care," Economics Working Papers 809, Department of Economics and Business, Universitat Pompeu Fabra. [Downloadable!]
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