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Decreasing utilization and increasing prices of brand-name oral contraceptive pills: Implications to societal costs and market competition

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  • James X Zhang

Abstract

The affordability of pharmaceuticals has been a major challenge in US health care. Generic substitution has been proposed as an important tool to reduce the costs, yet little is known how the prices of more expensive brand-name drugs would be affected by an increased utilization of generics. We aimed to examine the trend of overall utilization and the total costs of brand-name oral contraceptive pills (OCPs), the most widely used form of contraception, and its association with the pharmaceutical market concentration among the OCPs. Data from the Medical Expenditure Panel Survey (MEPS) 2011–2014, a nationally representative survey of healthcare utilization, were extracted on the utilization of generic and brand-name OCPs. A multiple logit regression analysis was conducted to assess the trend in utilization of brand-name OCPs over time. Total costs, including the costs to the payers and consumers, were synthesized. The Herfindahl-Hirschman Index (HHI), an index describing market concentration, was constructed, and a multiple regression analysis was conducted to evaluate the association between the brand-name OCP prices and the market share of individual brand-name drugs. The odds of utilizing brand-name drugs decreased steadily in 2012, 2013, and 2014 compared to 2012 (AOR 0.87, 0.73, 0.55, respectively, p

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  • James X Zhang, 2020. "Decreasing utilization and increasing prices of brand-name oral contraceptive pills: Implications to societal costs and market competition," PLOS ONE, Public Library of Science, vol. 15(6), pages 1-10, June.
    • Handle: RePEc:plo:pone00:0234463
    DOI: 10.1371/journal.pone.0234463
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    References listed on IDEAS

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    1. Else-Lydia Toverud & Katrin Hartmann & Helle Håkonsen, 2015. "A Systematic Review of Physicians’ and Pharmacists’ Perspectives on Generic Drug Use: What are the Global Challenges?," Applied Health Economics and Health Policy, Springer, vol. 13(1), pages 35-45, August.
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