Why are pharmacy acquisition costs and consumer prescription drug price indices apparently diverging?

2020 ◽  
Vol 29 (12) ◽  
pp. 1721-1727
Author(s):  
Carolyn Wolff ◽  
Randall Lutter
Keyword(s):  
Prescription Drug ◽  
Drug Price ◽  
Price Indices ◽  
Acquisition Costs

Product Proliferation under Rational Inattention: Application to Health Insurance

2021 ◽  
Vol 111 ◽  
pp. 554-559
Author(s):  
Zach Y. Brown ◽  
Jihye Jeon
Keyword(s):  
Health Insurance ◽  
Prescription Drug ◽  
Market Share ◽  
Information Acquisition ◽  
Rational Inattention ◽  
Drug Insurance ◽  
Acquisition Costs ◽  
Using Data ◽  
Product Proliferation ◽  
To Receive

In markets with complicated products such as insurance, why do firms offer many products even when consumers appear to receive little benefit? We show that when consumers face information acquisition costs, firms may have an incentive to introduce many undifferentiated products. This allows firms to gain market share and increase markups. We document initial evidence consistent with the model using data from Medicare prescription drug insurance. Insurers that offer more duplicate or similar plans have higher-cost plans. These results suggest a role for policymakers to restrict product proliferation in markets with complicated products.

Evaluation of Health Plan Member Use of an Online Prescription Drug Price Comparison Tool

2010 ◽  
Vol 16 (9) ◽  
pp. 680-692
Author(s):  
Norman V. Carroll ◽  
Matthew P. Mitchell ◽  
H. Eric Cannon ◽  
Bryan W. York ◽  
Robert S. Oscar
Keyword(s):  
Prescription Drug ◽  
Health Plan ◽  
Drug Price ◽  
Price Comparison ◽  
Plan Member ◽  
Health Plan Member

scholarly journals PHP14 DRUG PRICE INDICES 1980-2002 IN FINLAND

2003 ◽  
Vol 6 (6) ◽  
pp. 714-715
Author(s):  
V Jormanainen ◽  
J Hahl ◽  
S Aaltonen
Keyword(s):  
Drug Price ◽  
Price Indices

scholarly journals PHP32 - IMPACT OF MANUFACTURER COMPETITION ON PRESCRIPTION DRUG PRICE INFLATION IN THE UNITED STATES

2018 ◽  
Vol 21 ◽  
pp. S156
Author(s):  
I. Hernandez ◽  
C.B. Good ◽  
W.F. Gellad ◽  
N. Parekh ◽  
M. He ◽  
...  
Keyword(s):  
United States ◽  
Prescription Drug ◽  
Drug Price ◽  
The United States ◽  
Price Inflation

scholarly journals PHP19 DRUG PRICE INDICES 1980–2005 IN FINLAND

2006 ◽  
Vol 9 (6) ◽  
pp. A213
Author(s):  
J Hahl ◽  
S Aaltonen ◽  
V Jormanainen
Keyword(s):  
Drug Price ◽  
Price Indices

Relentless Prescription Drug Price Increases

JAMA ◽  
2020 ◽  
Vol 323 (9) ◽  
pp. 826 ◽  
Author(s):  
Chaarushena Deb ◽  
Gregory Curfman
Keyword(s):  
Prescription Drug ◽  
Drug Price ◽  
Price Increases

scholarly journals Association of Prescription Drug Price Rebates in Medicare Part D With Patient Out-of-Pocket and Federal Spending

2017 ◽  
Vol 177 (8) ◽  
pp. 1185 ◽  
Author(s):  
Stacie B. Dusetzina ◽  
Rena M. Conti ◽  
Nancy L. Yu ◽  
Peter B. Bach
Keyword(s):  
Prescription Drug ◽  
Drug Price ◽  
Medicare Part D ◽  
Medicare Part ◽  
Federal Spending ◽  
Part D
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