Benefit Plan Design and Prescription Drug Utilization Among Asthmatics: Do Patient Copayments Matter?

42 Pages Posted: 16 Nov 2003 Last revised: 31 Dec 2022

See all articles by William H. Crown

William H. Crown

Medstat

Ernst R. Berndt

Massachusetts Institute of Technology (MIT) - Sloan School of Management; National Bureau of Economic Research (NBER)

Onur Baser

Medstat

Stan N. Finkelstein

Massachusetts Institute of Technology (MIT) - Sloan School of Management

Whitney P. Witt

Northwestern University - Feinberg School of Medicine

Jonathan Maguire

Medstat

Kenan E. Haver

Massachusetts General Hospital - Department of Pulmonary Medicine

Date Written: November 2003

Abstract

Objective: The ratio of controller to reliever medication use has been proposed as a measure of treatment quality for asthma patients. In this study we examine the effects of plan level mean out-of-pocket asthma medication patient copayments and other features of benefit plan design on the use of controller medications alone, controller and reliever medications (combination therapy), and reliever medications alone. Methods: 1995-2000 MarketScan claims data were used to construct plan-level out-of-pocket copayment and physician/practice prescriber preference variables for asthma medications. Separate multinomial logit models were estimated for patients in fee-for-service (FFS) and non-FFS plans relating benefit plan design features, physician/practice prescribing preferences, patient demographics, patient comorbidities and county-level income variables to patient-level asthma treatment patterns. Results: We find that the controller reliever ratio rose steadily over 1995-2000, along with out-of-pocket payments for asthma medications, which rose more for controllers than for relievers. However, after controlling for other variables, plan level mean out-of-pocket copayments were not found to have a statistically significant influence upon patient-level asthma treatment patterns. On the other hand, physician practice prescribing patterns strongly influenced patient level treatment patterns. Conclusions: There is no strong statistical evidence that higher levels of out-of-pocket copayments for prescription drugs influence asthma treatment patterns. However, physician/practice prescribing preferences influence patient treatment.

Suggested Citation

Crown, William H. and Berndt, Ernst R. and Baser, Onur and Finkelstein, Stan N. and Witt, Whitney P. and Maguire, Jonathan and Haver, Kenan E., Benefit Plan Design and Prescription Drug Utilization Among Asthmatics: Do Patient Copayments Matter? (November 2003). NBER Working Paper No. w10062, Available at SSRN: https://ssrn.com/abstract=463429

William H. Crown

Medstat ( email )

777 E. Eisenhower Parkway
Ann Arbor, MI 48108
United States

Ernst R. Berndt (Contact Author)

Massachusetts Institute of Technology (MIT) - Sloan School of Management ( email )

Room E52-452
Cambridge, MA 02142
United States
617-253-2665 (Phone)
617-258-6055 (Fax)

National Bureau of Economic Research (NBER)

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Cambridge, MA 02138
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Onur Baser

Medstat

777 E. Eisenhower Parkway
Ann Arbor, MI 48108
United States

Stan N. Finkelstein

Massachusetts Institute of Technology (MIT) - Sloan School of Management ( email )

E56-390B
Cambridge, MA 02142
United States
617-253-8014 (Phone)
617-253-3033 (Fax)

Whitney P. Witt

Northwestern University - Feinberg School of Medicine ( email )

Chicago, IL 60611
United States

Jonathan Maguire

Medstat

777 E. Eisenhower Parkway
Ann Arbor, MI 48108
United States

Kenan E. Haver

Massachusetts General Hospital - Department of Pulmonary Medicine

55 Fruit Street
Boston, MA 02114
United States

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