When Discounts Raise Costs: The Effect of Copay Coupons on Generic Utilization
نویسندگان
چکیده
In this section, we present a stylized formal model to illustrate the effect of coupons on behavior, emphasizing the incentives generated by insurance. Throughout, we assume that a bioequivalent generic for the branded drug is available and is produced by several generic firms. We further assume that the generic firms produce undifferentiated products and price at marginal cost. This assumption, which is consistent with evidence on generic pricing, allows us to abstract away from any strategic interactions between brand and generic pricing.
منابع مشابه
Web-based survey to assess the perceptions of managed care organization representatives on use of copay subsidy coupons for prescription drugs.
BACKGROUND Promotion of prescription drug coupons and vouchers by pharmaceutical manufacturers has increased in recent years. These coupons and vouchers usually subsidize patients' cost-sharing obligations. In other words, drug companies pay for a patient's portion of the drug cost, and the remaining cost is paid by the patient and the patient's health plan. This practice is normally used for b...
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