On reimbursement reforms and stockpiling of prescription drugs: the case of insulin.
OBJECTIVE
To show that care should be taken in studies which aim at linking prescription drug prices to purchased quantities due to anticipation and stockpiling effects.


METHODS
Using purchasing records for a 20% random sample of the entire Danish population, the effects of increasing co-payments are estimated using fixed effects techniques.


RESULTS
The results indicate that insulin-takers react to announced changes in reimbursement policies by stockpiling on their medications.


CONCLUSIONS
Using before-and-after comparisons to identify the price responsiveness of prescription drug demand can be very misleading, when changes in co-payments are announced.
Aarhus University, Business and Social Sciences Department of Economics and Business, Barholins Allé 10 Bld. 1322, 8000 Aarhus C, Denmark. nskipper@econ.au.dk
Niels
N
Skipper
D017047:Cost Sharing; D003718:Denmark; D006801:Humans; D007004:Hypoglycemic Agents / Q000191:economics / Q000600:supply & distribution*; D007328:Insulin / Q000191:economics / Q000600:supply & distribution*; D009313:National Health Programs; D012051:Reimbursement Mechanisms / Q000191:economics / Q000458:organization & administration*; D062205:Strategic Stockpile
D007004:Hypoglycemic Agents; D007328:Insulin