Data and Code for: Preferred Pharmacy Networks and Drug Costs

Principal Investigator(s):  View help for Principal Investigator(s) Amanda Starc, Northwestern University; Ashley Swanson, Columbia University

Version:  View help for Version V1

Name File Type Size Last Modified
F01 Copays by Formulary Tier and Preferred Status.do text/x-stata-syntax 3.4 KB 09/29/2020 08:13:AM
F02 Distributions of Driving Distance to Network Pharmacies.do text/x-stata-syntax 8.9 KB 09/29/2020 08:13:AM
F03 Effect of Percent Preferred by LIS Quartile.do text/x-stata-syntax 4.1 KB 09/29/2020 08:13:AM
FA1 Retail Price Variation - Top Drugs.do text/x-stata-syntax 1.6 KB 09/29/2020 08:13:AM
FA3 Distribution of LIS Coverage.do text/x-stata-syntax 750 bytes 09/29/2020 08:13:AM
FA4 Differential Distance to Preferred Pharmacies.do text/x-stata-syntax 8.9 KB 09/29/2020 08:13:AM
FA5 Access Across Regions.do text/x-stata-syntax 8.8 KB 09/29/2020 08:13:AM
FA6 Pharmacy Demand Parameter Estimates by LIS Status and Region.do text/x-stata-syntax 12.7 KB 09/29/2020 08:13:AM
FA7 Correlation between Preferred Pharmacy Steering and % Preferred.do text/x-stata-syntax 8.1 KB 09/29/2020 08:13:AM
T01 Plan Summary Statistics.do text/x-stata-syntax 9.2 KB 09/29/2020 08:13:AM

Project Description

Summary:  View help for Summary
Selective contracting is an increasingly popular tool for reducing healthcare costs, but any savings must be weighed against consumer surplus losses from restricted access. Recently, many prescription drug plans utilize preferred pharmacy networks to reduce drug prices. Our results suggest that Medicare Part D plans with preferred pharmacy networks pay lower retail drug prices, while subsidized enrollees’ insensitivity to preferred pharmacy cost-sharing discounts reduces these savings. We then estimate pharmacy demand models to quantify the costs and benefits of preferred pharmacy networks, finding that the average enrollee benefits from preferred pharmacy contracting, due to reduced out-of-pocket costs at preferred pharmacies.


Scope of Project

Subject Terms:  View help for Subject Terms prescription drugs; insurance coverage
JEL Classification:  View help for JEL Classification
      I13 Health Insurance, Public and Private
      L10 Market Structure, Firm Strategy, and Market Performance: General
Geographic Coverage:  View help for Geographic Coverage United States


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Published Versions

V1 [2021-07-20]

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