The Effect of Any Willing Provider and Freedom of Choice Laws on Prescription Drug Expenditures
نویسندگان
چکیده
Any Willing Provider and Freedom of Choice laws restrict the ability of managed care entities, including pharmacy benefit managers, to selectively contract with providers. The managed care entities argue this limits their ability to generate cost savings, while proponents of the laws suggest that such selective contracts limit competition, leading to an increase in aggregate costs. We examine the effect of state adoption of such laws on total state healthcare spending, finding that any willing provider/ freedom of choice laws are associated with cost increases of at least 3 percent. These results suggest that these laws are harmful from a spending perspective. Professor, University of Pennsylvania School of Law. Professor, George Mason University School of Law and Department of Economics. We thank Angela Diveley and Nate Harris for research assistance.
منابع مشابه
Regulatory restrictions on selective contracting: an empirical analysis of "any-willing-provider" regulations.
"Any-willing-provider" (AWP) laws compel managed care plans to accept any provider willing to accept the plan's terms and conditions, potentially undermining managed care's ability to constrain spending. However. AWP laws potentially respond to inefficient risk-selection by providers of managed care. With risk selection, observed reductions in expenditures in the managed care sector may be offs...
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