Data and Code for: Insurance Design and Pharmaceutical Innovation

Principal Investigator(s):  View help for Principal Investigator(s) Leila Agha, Dartmouth College; Soomi Kim, Massachusetts Institute of Technology; Danielle Li, Massachusetts Institute of Technology

Version:  View help for Version V1

Name File Type Size Last Modified
  Replication package 07/08/2021 02:45:PM
LICENSE.txt text/plain 14.7 KB 06/03/2021 06:50:AM

Project Citation: 

Agha, Leila, Kim, Soomi, and Li, Danielle. Data and Code for: Insurance Design and Pharmaceutical Innovation. Nashville, TN: American Economic Association [publisher], 2022. Ann Arbor, MI: Inter-university Consortium for Political and Social Research [distributor], 2022-05-25. https://doi.org/10.3886/E141701V1

Project Description

Summary:  View help for Summary This paper studies how insurance coverage policies impact pharmaceutical innovation. In the United States, most patients obtain prescription drugs through insurance plans administered by Pharmacy Benefit Managers (PBMs). Beginning in 2012, PBMs began refusing to provide coverage for many newly approved drugs when cheaper alternatives were available. We document a shift in pharmaceutical R&D strategies after this policy took effect: therapeutic classes at greater risk of exclusion experienced a relative reduction in investments. This shift reduced development of drug candidates that appear more incremental: that is, those in drug classes with more pre-existing therapies and less scientifically novel research. 

Scope of Project

Subject Terms:  View help for Subject Terms innovation; pharmaceuticals; health insurance; prescription drugs
JEL Classification:  View help for JEL Classification
      I11 Analysis of Health Care Markets
      O31 Innovation and Invention: Processes and Incentives
Geographic Coverage:  View help for Geographic Coverage United States
Time Period(s):  View help for Time Period(s) 2007 – 2017
Collection Date(s):  View help for Collection Date(s) 2018 – 2018
Universe:  View help for Universe ATC4 drug classes containing prescriptions drugs
Data Type(s):  View help for Data Type(s) program source code

Methodology

Data Source:  View help for Data Source Clarivate Analytics Cortellis Investigational Drug Database (2018)
First Data Bank Drug Database (2018)
Unit(s) of Observation:  View help for Unit(s) of Observation Anatomical Therapeutic Chemical (ATC) Classification 4-digit drug class code

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Published Versions

V1 [2022-05-25]

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