Niels Skipper1. 1. Aarhus University, Business and Social Sciences Department of Economics and Business, Barholins Allé 10 Bld. 1322, 8000 Aarhus C, Denmark. nskipper@econ.au.dk
Abstract
OBJECTIVES: 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. CONCLUSION: 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.
OBJECTIVES: 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. CONCLUSION: 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.