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The impact of cost-sharing on prescription drug demand: evidence from a double-difference regression kink design
University Cattolica Sacro Cuore, ITA.
Karlstads universitet, Fakulteten för humaniora och samhällsvetenskap (from 2013), Handelshögskolan (from 2013).ORCID-id: 0000-0002-7143-8793
University of Gothenburg.ORCID-id: 0000-0003-1113-7478
2022 (Engelska)Ingår i: European Journal of Health Economics, ISSN 1618-7598, E-ISSN 1618-7601, Vol. 23, s. 1591-1599Artikel i tidskrift (Refereegranskat) Published
Abstract [en]

Pharmaceuticals represent the third-largest expenditure item in health care spending in the OECD countries, and cost growth is around 5% per year in many OECD countries. One possible way to contain the rise in pharmaceutical spending is the use of cost-sharing schemes that makes insured individuals directly bear parts of the cost of a drug. This study estimates the price sensitivity of demand for prescription drugs using data on all prescription drug purchases from a random sample of 400,000 Swedes followed from 2010 to 2013. We use a regression kink design (RKD) by exploiting the kinked Swedish cost-sharing scheme to assess the price elasticity. Further, since the cost-sharing scheme has changed over time, we also use a double-difference RKD to account for potential confounding nonlinearities around the kink. Our results indicate that the standard RKD results are biased and exaggerate the price sensitivity. Our preferred double-difference RKD specifications show no or minor price sensitivity (95% CI price elasticity from - 0.12 to 0.02). The results are similar in several sub-group analyses across age groups, sexes, and income quartiles.

Ort, förlag, år, upplaga, sidor
Springer, 2022. Vol. 23, s. 1591-1599
Nyckelord [en]
Cost-sharing, Drug consumption, Health-care, Moral hazard, Regression kink design, Natural experiment
Nationell ämneskategori
Nationalekonomi
Forskningsämne
Nationalekonomi
Identifikatorer
URN: urn:nbn:se:kau:diva-89142DOI: 10.1007/s10198-022-01446-wISI: 000761855300001PubMedID: 35212886Scopus ID: 2-s2.0-85125287700OAI: oai:DiVA.org:kau-89142DiVA, id: diva2:1645539
Tillgänglig från: 2022-03-18 Skapad: 2022-03-18 Senast uppdaterad: 2023-02-02Bibliografiskt granskad

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Jakobsson, Niklas

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