We are hosting our fourth and last seminar of this series on October 13, at 2pm CET. Our speaker will be Carolina Santos (Nova School of Business and Economics, Universidade Nova de Lisboa; Nova Health Economics & Management Knowledge Center). Please find below the Zoom meeting details, title, and abstract of the seminar.
When: Oct 13, 2020 02:00 PM Amsterdam, Berlin, Rome, Stockholm, Vienna
Link: Register in advance for this meeting https://zoom.us/meeting/register/tJUuduGhqTsqE9C-SfV3abQHp9im-RQkkQ_l
After registering, you will receive a confirmation email containing information about joining the meeting.
Presenter: Carolina Santos (Nova School of Business and Economics, Universidade Nova de Lisboa; Nova Health Economics & Management Knowledge Center), joint work with Eduardo Costa
Title: Pricing, consumption and competition in pharmaceutical drugs:
Evidence from changing drugs' co-payments in Portugal
Abstract: Reference price regimes for prescription drugs are usually implemented with the aim of curbing public expenditure with pharmaceuticals, induce drug substitution from branded to generics drugs and enhance competition. In these systems, patients co-pay the difference between the drug's pharmacy retail price and the reimbursement level. Relying on a detailed product-level panel dataset of prescription drugs sold in Portuguese retail pharmacies, from 2016 to 2019, we evaluate the impact of a policy change in the way reference prices are computed, affecting 32% of the equivalent drug groups. We analyse the impact of such change on pricing strategies of pharmaceutical companies and on consumption. Results of a differences-in-differences analysis show that affected products - those subject to a decrease in their reference price - did not reduce their prices, which implied higher prices paid by patients. We found evidence of a 15% decline on branded drugs consumption and no statistically significant effect on generic drug consumption, with signicant heterogeneity across regions and therapeutics. Still, no evidence was found of increased competition in the groups affected by the policy change. Results suggest that NHS co-payments savings were partially achieved through higher out-of-pocket payments paid by patients, raising potential equity concerns.
For more information about this seminar series please visit http://www.aes.es/aesec/aes-apes-vecr/