Rx Pricing, Ins Coverage: Evidence from Medicare Part D

This paper explores whether the pricing of drugs relative to their clinical value affects insurance coverage and usage for drugs under Medicare Part D. The authors find that lower generic prices stimulate both greater use and more generous insurance coverage. However, for branded drugs they find no relationship for either coverage or use based on variation across drugs in their cost effectiveness, as estimated by the Institute for Clinical and Economic Review (ICER) Read Full Article »