Unbiased Analysis of Today's Healthcare Issues
The Bureau of Labor Statistics’ (BLS’) Prescription Drug Consumer Price Index (CPI‐Rx) looks at price changes for drugs dispensed at outpatient retail pharmacies. However, many pharmaceuticals–especially infusions and injections–are administered at physician offices or hospitals. How would including physician-administered drugs impact the CPI-Rx? That is the question a paper by Hicks, Berndt and Frank (2024)…
Any economist knows that if you raise the price of a good, demand goes down. Thus, one should not be surprised to find numerous studies that show that increased cost sharing decreases drug utilization. But how does drug utilzation decrease? Is it along the extensive margin (i.e., the decision to initiate the drug) or along the intensive margin…
Specialty drugs have greatly improved quality and duration of life for many patients. Specialty drugs have been developed for a variety of illnesses, such as cancer, hepatitis C, rheumatoid arthritis, and multiple sclerosis. However, these drugs are typically very expensive. Are they worth the cost? A paper by Chambers et al. (2014) find the following: …specialty drugs offered…