Electronic Resource
350 Main Street , Malden , MA 02148 , USA , and PO Box 1354, 9600 Garsington Road , Oxford OX4 2XG , UK .
:
Blackwell Publishing, Inc.
Journal of economics & management strategy
14 (2005), S. 0
ISSN:
1530-9134
Source:
Blackwell Publishing Journal Backfiles 1879-2005
Topics:
Economics
Notes:
Restrictive drug formularies may influence physician prescribing behavior for other patients with more generous drug benefit, so-called “spillover effects.” We focus on Protonix, a proton pump inhibitor, introduced at a discount price, and study subsequent physician prescribing decision for open-formulary Medicaid patients. Using two national databases on physician prescribing patterns and health plan drug formularies, we find consistent evidence of significant, positive spillover effects from 1-PPI and 2-PPI formularies that include Protonix onto Medicaid, with a larger effect from the most restrictive, 1-PPI formularies. Physicians who prescribe a higher proportion of Protonix to their non-Medicaid patients because of restrictive formularies, also prescribe a higher proportion of Protonix to their Medicaid patients with an open formulary. Each 10% increase in Protonix's predicted non-Medicaid share results in an 8% increase in its share of Medicaid prescriptions (p 〈 0.001). Similar spillover effects seem to exist for older PPI products as well. A restrictive drug formulary therefore influences physician prescribing behavior for other patients not directly subject to its restrictions.
Type of Medium:
Electronic Resource
URL:
http://dx.doi.org/10.1111/j.1530-9134.2005.00081.x
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