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Can income-based co-payment rates improve disparity? The case of the choice between brand-name and generic drugs.


ABSTRACT: BACKGROUND:Higher income population tend to prefer brand-name to generic drugs, which may cause disparity in access to brand-name drugs among income groups. A potential policy that can resolve such disparity is imposing a greater co-payment rate on high-income enrollees. However, the effects of such policy are unknown. We examined how patients' choice between brand-name and generic drugs are affected by the unique income-based co-payment rates in Japan; 10% for general enrollees and 30% for those with high income among the elderly aged 75 and over. METHODS:We drew on cross-sectional price variation among commonly prescribed 311 drugs using health insurance claims data from a large prefecture in Japan between October 2013 and September 2014 to identify between-income-group differences in responses to differentiated payments. RESULTS:Running 311 multivariate logistic regression models controlling individual demographics, the median estimate indicated that high-income group was 3% (odds ratio?=?0.97) less likely to choose a generic drug than the general-income group and the interquartile estimates ranged 0.92-1.02. The multivariate feasible generalized least squares model indicated high-income group's higher likelihood to choose brand-name drugs than the general-income group without co-payment rate differentiation (p?

SUBMITTER: Ito Y 

PROVIDER: S-EPMC6824135 | biostudies-literature | 2019 Nov

REPOSITORIES: biostudies-literature

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Can income-based co-payment rates improve disparity? The case of the choice between brand-name and generic drugs.

Ito Yuki Y   Hara Konan K   Yoo Byung-Kwang BK   Tomio Jun J   Kobayashi Yasuki Y  

BMC health services research 20191101 1


<h4>Background</h4>Higher income population tend to prefer brand-name to generic drugs, which may cause disparity in access to brand-name drugs among income groups. A potential policy that can resolve such disparity is imposing a greater co-payment rate on high-income enrollees. However, the effects of such policy are unknown. We examined how patients' choice between brand-name and generic drugs are affected by the unique income-based co-payment rates in Japan; 10% for general enrollees and 30%  ...[more]

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