Survey Results Show That Adults Are Willing To Pay Higher Insurance Premiums For Generous Coverage Of Specialty Drugs (original) (raw)

Willingness to pay for health risk reductions: Differences by type of illness

… of Economics, University …, 2008

In this paper, we examine how individual willingness to pay (WTP) for health risk reductions varies with the type of health threat in question. Our research focuses on systematic differences in WTP for health risk reductions across different types of major health threats, including five types of cancers (breast cancer, prostate cancer, colon cancer, lung cancer, skin cancer)

Willingness to pay for public health policies to treat illnesses

2010

JR DeShazo Associate Professor Department of Public Policy School of Public Affairs 3250 Public Policy Building, Box 951656 Los Angeles, CA 90095-1656 Keywords: public health policy; medical treatment; stated preference survey; conjoint analysis; willingness to pay; morbidity and mortality reduction; discounting

Comorbidities and the willingness to pay for health improvements

Journal of Public Economics, 2003

We show that the willingness to pay for health improvements increases with the severity and probability of occurrence of comorbidities. This result, which is obtained under mild restrictions on the shape of the utility function, has important implications for cost benefit studies applied to health care. In particular it implies that the discrimination of the elderly, believed to be implicit in cost benefit analysis, is less of a problem than commonly thought. D

Insurance and the High Prices of Pharmaceuticals

2016

for their helpful comments and suggestions. We are grateful to Rena Conti for her comments and for giving us permission to use the data discussed in Section The views expressed herein are those of the authors and do not necessarily reflect the views of the National Bureau of Economic Research. NBER working papers are circulated for discussion and comment purposes. They have not been peer-reviewed or been subject to the review by the NBER Board of Directors that accompanies official NBER publications.

Does the reason for buying health insurance influence behaviour

2006

The Centre aims to contribute to the development and application of health economics and health services research through research, teaching and policy support. CHERE's research program encompasses both the theory and application of health economics. The main theoretical research theme pursues valuing benefits, including understanding what individuals value from health and health care, how such values should be measured, and exploring the social values attached to these benefits. The applied research focuses on economic and the appraisal of new programs or new ways of delivering and/or funding services. CHERE's teaching includes introducing clinicians, health services managers, public health professionals and others to health economic principles. Training programs aim to develop practical skills in health economics and health services research. Policy support is provided at all levels of the health care system by undertaking commissioned projects, through the provision of formal and informal advice as well as participation in working parties and committees.

The Cost Effectiveness of Health Insurance

Background: Although studies have examined both the adverse consequences of lacking health insurance and the costs of insuring the uninsured, there are no estimates of the value of providing health insurance to those currently uninsured. Objective: To examine the value associated with providing insurance to those currently uninsured through an incremental cost-effectiveness analysis. Methods: People aged 25 to 64 in both the National Health Interview Survey (with 2-year mortality follow-up) and the Medical Expenditure Panel Survey were examined to estimate the contribution of sociodemographic, health, and health behavior characteristics on insured persons' quality-adjusted life years (QALYs) and healthcare costs. Parameter estimates from these regression models were used to predict QALYs and costs associated with insuring the uninsured, given their characteristics for 1996. Markov decision-analysis modeling was then employed to calculate incremental cost-effectiveness ratios. Results: The incremental cost-effectiveness of insurance for the average 25-year-old adult (through age 64) is approximately 35,000perQALYgained(range35,000 per QALY gained (range 35,000perQALYgained(range21,000 to $48,000). The incremental cost-effectiveness ratio becomes more favorable as people approach age 65. Conclusions: The additional health care purchased with health insurance provides gains in quality-adjusted life at costs that compare favorably to those of other programs and medical interventions society now chooses to fund. (Am J Prev Med 2005;28(1):59 – 64)

Health insurance and the demand for medical care

Journal of Health Economics, 1983

With rare exceptions the provision of actuarially fair health insurance tends to substantially increase the demand for medical care by redistributing income from the healthy to the sick. This suggests that previous studies which attribute all the extra demand for medical care to moral hazard effects may overestimate the efficiency costs of health insurance.

Forgoing medical care because of cost

Cancer, 2010

Background-Many US cancer survivors live years after diagnosis, emphasizing the importance of health care access for survivors. It is not known if having cancer might impact disparities in health care access that are present in the general population. The objective of this study was to examine the prevalence of forgoing care due to financial concern in a representative sample of US adults to determine if cancer history and race/ethnicity are associated with likelihood of forgoing medical care.

The Health Costs of Cost-Sharing

2021

We use the design of Medicare's prescription drug benefit program to demonstrate three facts about the health consequences of cost-sharing. First, we show that an as-if-random increase of 33.6% in out-of-pocket price (11.0 percentage points (p.p.) change in coinsurance, or 10.40perdrug)causesa22.610.40 per drug) causes a 22.6% drop in total drug consumption (10.40perdrug)causesa22.661.20), and a 32.7% increase in monthly mortality (0.048 p.p.). Second, we trace this mortality effect to cutbacks in life-saving medicines like statins and antihypertensives, for which clinical trials show large mortality benefits. We find no indication that these reductions in demand affect only 'low-value' drugs; on the contrary, those at the highest risk of heart attack and stroke, who would benefit the most from statins and antihypertensives, cut back more on these drugs than lower risk patients. Similar patterns exist for other drug-disease pairs, and irrespective of socioeconomic circumstance. Finally, we document that when faced with complex, high-dimensional choice problems, patients respond in simple, perverse ways. Specifically, price increases cause 18.0% more patients (2.8 p.p.) to fill no drugs, regardless of how many drugs they had been on previously, or their health risks. This decision mechanically results in larger absolute reductions in utilization for those on many drugs. We conclude that cost-sharing schemes should be evaluated based on their overall impact on welfare, which can be very different from the price elasticity of demand.

Benefit Design And Specialty Drug Use Increased cost sharing for specialty drug products will not reduce their use but will transfer a greater share of their costs to patients

In this paper we examine spending by privately insured patients with four con- ditions often treated with specialty drugs: cancer, kidney disease, rheumatoid arthritis, and multiple sclerosis. Despite having employer-sponsored health insurance, these patients face substantial risk for high out-of-pocket spending. In contrast to traditional pharmaceuti- cals, we find that specialty drug use is largely insensitive to cost sharing, with price elastici- ties ranging from 0.01 to 0.21. Given the expense of many specialty drugs, care manage- ment should focus on making sure that patients who will most benefit receive them. Once such patients are identified, it makes little economic sense to limit coverage. (Health Af-