Abstract
To date, there has been limited research on what drives demand for smoking cessation products, especially pharmaceutical interventions. In this study, we use the near-universe of smoking cessation pharmaceutical prescriptions (1999–2012) to estimate the demand response to several anti-smoking policies (cigarette taxes, smoking bans, and Medicaid benefits). Our differences-in-differences estimates suggest an increase of 20 prescriptions per 10,000 persons following the introduction of Medicaid coverage, while taxes and bans demonstrate a less clear impact at the state level. Consumers appear sensitive to out-of-pocket cessation medication costs, which has relevance to recent Affordable Care Act insurance expansions and coverage regulations.
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