Abstract
We use individual level data on purchases of cholesterol-lowering drugs to study the responses of physicians and patients to variation in the cost of drugs. In a sample of first-time statin prescriptions to employees from 12 Fortune 500 firms, we find that co-pay variation across plans has a small effect on the choice of drug, and this effect does not vary with patient income. After the highly publicized patent expiration of Zocor, however, prescriptions for this drug increased substantially, especially for lower income patients. Our analysis suggests that physicians can perceive the price sensitivity of their patients and adjust their initial prescriptions accordingly, but only in response to a large and universal price change. (JEL D14, G22, I11, I13, L65)
Sign-in/Register to access full text options 
Talk to us
Join us for a 30 min session where you can share your feedback and ask us any queries you have
Schedule a callDisclaimer: All third-party content on this website/platform is and will remain the property of their respective owners and is provided on "as is" basis without any warranties, express or implied. Use of third-party content does not indicate any affiliation, sponsorship with or endorsement by them. Any references to third-party content is to identify the corresponding services and shall be considered fair use under The CopyrightLaw.
