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By Michael Grossman

The fields of pharmaceutical economics and overall healthiness economics/policy are achieving some extent of convergence. this is often because of either the frequent availability of pharmaceutical remedies, observed via broader insurance, and the legislation of prescribed drugs in either inner most and executive plans. This publication will bridge the distance. we are going to discover advancements in either U.S. and overseas environment. The procedure of the U.S. is characterised through a mixture of deepest and executive assurance for pharmaceuticals with the growth of Medicare half D. so much different constructed nations are characterised by way of social assurance with both the govt as a unmarried payer reminiscent of in Canada or Australia, or a countrywide healthiness carrier as in lots of different ecu nations. learn more... half I: foreign stories -- Pharmaceutical rules in ecu nations / Pedro Pita Barros -- foreign adventure with comparative effectiveness learn : case reviews from England/Wales and Germany / John F.P. Bridges ... [et al.] -- half II: nationwide case experiences -- Pharmaceutical coverage within the Netherlands : from rate rules in the direction of controlled festival / Lieke H.H.M. Boonen ... [et al.] -- effect of pharmaceutical law and regulations on well-being process functionality objectives in israel / Philip Sax and Amir Shmueli -- international budgets and supplier incentives : hospitals' drug costs in Taiwan / Shin-Yi Chou ... [et al.] -- Medicare half D turns 4 : traits in plan layout, enrollment, and the effect of this system on beneficiaries / Jack Hoadley and Kosali Simon -- half III: U.S. stories : from markets to coverage options -- Does prescription drug adherence decrease hospitalizations and prices? The case of diabetes / William E. Encinosa, Didem Bernard and Avi Dor -- fee shring, gain layout, and adherence : the case of a number of sclerosis / Avi Dor ... [et al.] -- typical usage and cost-sharing for pharmaceuticals / Teresa Bernard Gibson, Catherine G. McLaughlin and Dean G. Smith -- Drug costs, out-of-pocket funds, and insurer charges : how do payers fluctuate? / Jie Chen and John A. Rizzo -- opposed choice and the impression of medical health insurance on usage of prescribed medication between sufferers with power stipulations / Yuriy Pylypchuk -- The influence of drug classic on survival : micro facts from Puerto Rico's Medicaid software / Frank R. Lichtenberg -- half IV: targeted themes -- Retail pharmacy industry constitution and insurer-independent pharmacy bargaining within the Medicare half D period / Yang Xie ... [et al.] -- Patents, innovation, and the welfare results of Medicare half D / Adam Gailey, Darius Lakdawalla and Neeraj Sood

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Extra resources for Pharmaceutical Markets and Insurance Worldwide (Advances in Health Economics and Health Services Research)

Sample text

Reference pricing as a pharmaceutical reimbursement mechanism. In: J. ), The public financing of pharmaceuticals – An economic approach (pp. 103–123). Northampton, MA: Edward Elgar. , & Mossialos, E. (2004). Regulating pharmaceutical prices in the European Union. In: E. Mossialos, M. Mrazek & T. Whalley (Eds), Regulating pharmaceuticals in Europe: Striving for efficiency, equity and quality (pp. 114–129). Berkshire, England: Open University Press. OECD. (2008). Pharmaceutical pricing policies in a global market.

Included drugs do not need to enter fierce competition. In some countries, the decision by the third-party payer to include a drug in the positive list and the level of reimbursement provided is more important to firms’ profits than authorization to market the product. The reference pricing system offers an important advantage over the positive list. Since patients have to pay, at the margin, the full cost of any price increase, they will tend to be more price sensitive while still enjoying insurance protection against a major part of the financial cost.

This is usually termed ex ante moral hazard, distinct from the ex post moral hazard described in the main text. 6. An account of the effects produced in Germany by this policy change can be found in Pavcnik (2002). 7. Adapted from Barros and Martinez-Giralt (2002). 8. See Danzon (2001), Brekke et al. (2007), and Lopez-Casasnovas and PuigJunoy (2005). 9. See related empirical evidence in Kyle (2007). 10. OECD (2008) reports several stylized facts about the pharmaceutical industry, see also Mrazek and Mossialos (2004).

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