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The effect of drug vintage on survival: Micro evidence from Puerto Rico's Medicaid program

In: Pharmaceutical Markets and Insurance Worldwide

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  • Frank R. Lichtenberg

Abstract

Using micro data on virtually all of the drugs and diseases of over 500,000 people enrolled in Puerto Rico's Medicaid program, the impact of the vintage (original FDA approval year) of drugs used to treat a patient on the patient's three-year probability of survival, controlling for demographic characteristics (age, sex, and region), utilization of medical services, and the nature and complexity of illness are examined. It is found that people using newer drugs during January–June, 2000, were less likely to die by the end of 2002, conditional on the covariates. The estimated mortality rates are strictly declining with respect to drug vintage. For pre-1970 drugs, the estimated mortality rate is 4.4%. The mortality rates for 1970s, 1980s, and 1990s drugs are 3.6%, 3.0%, and 2.5%, respectively. The actual mortality rate is about 16% (3.7% vs. 4.4%) lower than it would have been if all of the drugs utilized in 2000 had been pre-1970 drugs. Estimates for subgroups of people with specific diseases display the same general pattern.

Suggested Citation

  • Frank R. Lichtenberg, 2010. "The effect of drug vintage on survival: Micro evidence from Puerto Rico's Medicaid program," Advances in Health Economics and Health Services Research, in: Pharmaceutical Markets and Insurance Worldwide, pages 273-292, Emerald Group Publishing Limited.
    • Handle: RePEc:eme:aheszz:s0731-2199(2010)0000022015
    DOI: 10.1108/S0731-2199(2010)0000022015
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    Cited by:

    1. Law, Michael R. & Grépin, Karen A., 2010. "Is newer always better? Re-evaluating the benefits of newer pharmaceuticals," Journal of Health Economics, Elsevier, vol. 29(5), pages 743-750, September.

    More about this item

    JEL classification:

    • H4 - Public Economics - - Publicly Provided Goods
    • I12 - Health, Education, and Welfare - - Health - - - Health Behavior
    • I18 - Health, Education, and Welfare - - Health - - - Government Policy; Regulation; Public Health
    • J1 - Labor and Demographic Economics - - Demographic Economics
    • L65 - Industrial Organization - - Industry Studies: Manufacturing - - - Chemicals; Rubber; Drugs; Biotechnology; Plastics

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