Regulation of Pharmaceutical Prices: Evidence from a Reference Price Reform in Denmark

Ulrich Kaiser, Susan J. Mendez, Thomas Rønde

    Publikation: Working paperForskning

    Abstrakt

    On April 1, 2005, Denmark changed the way references prices, a main determinant of reimbursements for pharmaceutical purchases, are calculated. The previous reference prices, which were based on average EU prices, were substituted to minimum domestic prices. Novel to the literature, we estimate the joint eects of this reform on prices and quantities. Prices decreased more than 26 percent due to the reform, which reduced patient and government expenditures by 3.0 percent and 5.6 percent, respectively, and producer revenues by 5.0 percent. The prices of expensive products decreased more than their cheaper counterparts, resulting in large dierences in patient benets from the reform.
    OriginalsprogEngelsk
    UdgiverKøbenhavns Universitet
    Antal sider41
    StatusUdgivet - 2010

    Emneord

    • Pharmaceutical Markets
    • Regulation
    • co-payments
    • Reference Pricing
    • Asymmetric Welfare Effects

    Citationsformater