Do pharmaceutical prices respond to potential patient out-of-pocket expenses?

  title={Do pharmaceutical prices respond to potential patient out-of-pocket expenses?},
  author={Nina Pavenik},
  journal={The Rand journal of economics},
  volume={33 3},
Despite the importance of patient insurance in the market for prescription pharmaceuticals, little is known about the impact of patient reimbursement on the pricing behavior of pharmaceutical firms. I examine the link between potential patient out-of-pocket expenses and pharmaceutical pricing using a unique policy experiment from Germany. Starting in 1989, a maximum reimbursement for a given medicine replaced a flat prescription fee. This change in reimbursement exposes the patient to the price… CONTINUE READING

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