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Prescription Charges In The United Kingdom: A Critical Review

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  • Theodore Hitiris
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    Abstract

    This is a critical evaluation of studies of the effects of prescription charges on UK National Health Care revenues. The conclusion reached is that, for several reasons relating to the availability of data and the quantitative methods used, the empirical studies of the effects of these charges were not able to provide a reliable estimate of the elasticity of demand for prescriptions and therefore of the revenue effects of increasing the prescription charges. However, a sensitivity analysis based on a range of this elasticity’s values shows that the revenue effect of prescription charges is negligible.

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    File URL: http://www.york.ac.uk/media/economics/documents/discussionpapers/2000/0004.pdf
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    Paper provided by Department of Economics, University of York in its series Discussion Papers with number 00/04.

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    Handle: RePEc:yor:yorken:00/04

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    Postal: Department of Economics and Related Studies, University of York, York, YO10 5DD, United Kingdom
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    Keywords: Prescription charges; Co-payments;

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    1. O'Brien, Bernie, 1989. "The effect of patient charges on the utilisation of prescription medicines," Journal of Health Economics, Elsevier, vol. 8(1), pages 109-132, March.
    2. Stephen Smith & Sheila Watson, 1990. "Modelling the effects of prescription charge rises," Fiscal Studies, Institute for Fiscal Studies, vol. 11(1), pages 75-91, February.
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