Feng, Josh, and Luca Maini. “Demand Inertia and the Hidden Impact of Pharmacy Benefit Managers” Management Science 70, no. 12 (2024): 8940-8961.
Slides
We estimate a dynamic structural model of drug pricing using net-of-rebate prices of anti-cholesterol drugs from 1996-2013 and use it to argue that inertia in drug demand obscures the impact of PBMs on prices and spending.
Read MoreFeng, Josh, Thomas Hwang, and Luca Maini. “Profiting from Most-Favored Customer Procurement Rules: Evidence from Medicaid” American Economic Journal: Economic Policy 2023, 15(2): 166–197)
Online Appendix, Slides
We find that an increase to Medicaid’s minimum drug rebate under the Affordable Care Act in 2010 lowered non-Medicaid drug spending by 2.5 percent. The result is likely driven by the interaction of this reform with Medicaid’s “most-favored customer” clause (MFCC).
Maini, Luca, and Fabio Pammolli. “Reference Pricing as a Deterrent to Entry: Evidence from the European Pharmaceutical Market” American Economic Journal: Microeconomics, 2023, 15(2): 345–383
Online Appendix, Slides
We estimate a structural model to show that drug manufacturers delay the launch of novel drugs in low-income European countries by up to one year in response to incentives generated by External Reference Pricing policies
Media coverage: StatNews, RealClearPolicy
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