Replication data for: When Discounts Raise Costs: The Effect of Copay Coupons on Generic Utilization

Principal Investigator(s): View help for Principal Investigator(s) Leemore Dafny; Christopher Ody; Matt Schmitt

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POL2015-0588_data			10/13/2019 05:23:AM
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Project Citation:

Dafny, Leemore, Ody, Christopher, and Schmitt, Matt. Replication data for: When Discounts Raise Costs: The Effect of Copay Coupons on Generic Utilization. Nashville, TN: American Economic Association [publisher], 2017. Ann Arbor, MI: Inter-university Consortium for Political and Social Research [distributor], 2019-10-13. https://doi.org/10.3886/E114678V1

Project Description

Summary: Branded pharmaceutical manufacturers frequently offer "copay coupons" that insulate consumers from cost-sharing, thereby undermining insurers' ability to influence drug utilization. We study the impact of copay coupons on branded drugs first facing generic entry between 2007 and 2010. To overcome endogeneity concerns, we exploit cross-state and cross-consumer variation in coupon legality. We find that coupons increase branded sales by 60+ percent, entirely by reducing the sales of bioequivalent generics. During the five years following generic entry, we estimate that coupons increase total spending by $30 to $120 million per drug, or $700 million to $2.7 billion for our sample alone.

Scope of Project

JEL Classification:
      G22 Insurance; Insurance Companies; Actuarial Studies
      I13 Health Insurance, Public and Private
      L11 Production, Pricing, and Market Structure; Size Distribution of Firms
      L65 Chemicals; Rubber; Drugs; Biotechnology; Plastics
      M31 Marketing

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Published Versions

V1 [2019-10-13]

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DDI 2.5

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