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On reimbursement reforms and stockpiling of prescription drugs: the case of insulin. | LitMetric
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.
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