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Deductibles and the Demand for Prescription Drugs: Evidence from French Data

  • Marc Perronnin


    (IRDES Institute for research and information in health economics)

  • Bidénam Kambia-Chopin


    (MSSS Ministère de la Santé et des services sociaux, Québec(Canada))

On January 1st 2008, a 0.5€ deductible levied on every prescription drug package purchased was introduced in France. This study aims at shedding light on the effect of this policy on prescription drug purchasing behavior among the targeted individuals. Declared behavior from a cross-sectional study based on participants in the French Health, Health Care and Insurance Survey of 2008. The determinants of having changed one’s prescription drugs consumption following the introduction of deductibles were explored based on the socio-behavioral model of Andersen and an economic model of drug demand. The empirical analysis used a logistic regression. All other factors being equal, individuals’ probability of having modified their drug consumption behaviour following the introduction of deductibles decreases with income level and health status (self-assessed health and suffering from a chronic disease). Deductibles on prescription drugs represent a significant financial burden for low-income individuals and those in poor health, with the potential effect of limiting their access to drugs.

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Paper provided by IRDES institut for research and information in health economics in its series Working Papers with number DT54.

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Length: 20 pages
Date of creation: Feb 2013
Date of revision: Feb 2013
Handle: RePEc:irh:wpaper:dt54
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  1. Nyman, John A., 1999. "The economics of moral hazard revisited," Journal of Health Economics, Elsevier, vol. 18(6), pages 811-824, December.
  2. 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.
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