title: The effects of copayments and generic substitution on the use and costs of prescription drugs.
abstract: Rising costs of prescription drugs are a concern to both private and public purchasers. Common methods of controlling or sharing costs include copayments and incentives to use generic substitutes. A study of prescription drug use and costs for a set of employer groups reveals that a common change in the rate of copayment from $3 to $5 per prescription is estimated to be associated with a 5% decrease in the number of prescriptions, an offsetting increase in ingredient costs per prescription, a 10% decrease in employer costs per person, and an increase in employee costs of approximately the $2 copayment per prescription.
authors.affiliation: Department of Health Services Management and Policy, University of Michigan, Ann Arbor 48109-2029.
authors.forename: D G
authors.initials: DG
authors.lastname: Smith
mesh_terms: D017047:Cost Sharing; D003362:Cost-Benefit Analysis; D016527:Drug Costs / Q000706:statistics & numerical data*; D011307:Drug Prescriptions / Q000191:economics; D004363:Drug Utilization / Q000191:economics / Q000706:statistics & numerical data*; D016568:Drugs, Generic / Q000191:economics*; D004467:Economics; D017049:Employer Health Costs; D006801:Humans; D007356:Insurance, Pharmaceutical Services / Q000191:economics*; D012044:Regression Analysis; D012052:Reimbursement, Incentive; D014481:United States
chemical_list: D016568:Drugs, Generic