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
  analysis 09/29/2020 12:13:PM
2010census.dta application/x-stata 975.6 KB 09/29/2020 08:13:AM
PDE_regsample_chain.do text/x-stata-syntax 3.2 KB 09/29/2020 08:13:AM
PDE_regsample_pharm.do text/x-stata-syntax 4.1 KB 09/29/2020 08:13:AM
README.docx application/vnd.openxmlformats-officedocument.wordprocessingml.document 25.1 KB 09/29/2020 08:13:AM
bene_DiD_file.do text/x-stata-syntax 5.1 KB 09/29/2020 08:13:AM
bene_spend_breakdown.do text/x-stata-syntax 4.9 KB 09/29/2020 08:13:AM
build_analytic_pharm_1114.do text/x-stata-syntax 6.1 KB 09/29/2020 08:13:AM
check_days_scale.do text/x-stata-syntax 10.9 KB 09/29/2020 08:13:AM
config_stata.do text/x-stata-syntax 105 bytes 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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