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The demand for statin: the effect of copay on utilization and compliance

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  • Patrick Thiebaud
  • Bimal V. Patel
  • Michael B. Nichol

Abstract

Increasing drug costs in the US have prompted employers and insurers alike to turn to higher drug copays for cost containment. The effect of rising copays on compliance with statins (HMG‐CoA reductase inhibitors) treatment has received surprisingly little attention in the applied literature. This paper uses pharmacy claims data from a commercially insured adult population to determine the effect of copay change on compliance at the individual level. Fixed effect logit and Poisson regressions estimate the effect of copays on monthly likelihood of high compliance and average monthly days of supply respectively. Higher copays reduce compliance among statin users, with less compliant patients responding more strongly to copay change than compliant patients. These results suggest that specific financial incentives given to less compliant patients could improve compliance with statin treatment at a relatively low cost. Copyright © 2007 John Wiley & Sons, Ltd.

Suggested Citation

  • Patrick Thiebaud & Bimal V. Patel & Michael B. Nichol, 2008. "The demand for statin: the effect of copay on utilization and compliance," Health Economics, John Wiley & Sons, Ltd., vol. 17(1), pages 83-97, January.
    • Handle: RePEc:wly:hlthec:v:17:y:2008:i:1:p:83-97
    DOI: 10.1002/hec.1245
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    Cited by:

    1. Lambrelli D & O’Donnell O, 2009. "Why Does the Utilization of Pharmaceuticals Vary So Much Across Europe? Evidence from Micro Data on Older Europeans," Health, Econometrics and Data Group (HEDG) Working Papers 09/06, HEDG, c/o Department of Economics, University of York.
    2. Leila Agha & Soomi Kim & Danielle Li, 2020. "Insurance Design and Pharmaceutical Innovation," NBER Working Papers 27563, National Bureau of Economic Research, Inc.

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