CPRC Seminar - May 5

The Columbia Population Research Center
is pleased to invite you to
When Discounts Raise Costs: The Effect of Copay Coupons on Generic Utilization

by
Leemore Dafny, Chris Ody, & Matt Schmitt
Presented by Leemore Dafny
Professor of Stretegy, the Herman Smith Research Professor in Hospital and Health Services, and Director of Health Enterprise Management
Kellogg School of Management at Northwestern University

Thursday, May 5, 2016
11:45am - 12:45 PM
Room 532b
Mailman School of Public health
722 West 168th Street

Videoconference
Room 705
Columbia School of Social Work
1255 Amsterdam Avenue
(between 121st and 122nd streets)

RSVP to https://cupop.formstack.com/forms/rsvp 

Lunch will be provided for those who RSVP to attend at the Mailman School.

Abstract
First introduced in the mid-2000s, ``copay coupons'' are now offered for most branded drugs. These coupons insulate consumers from cost sharing, thereby undermining insurers' ability to affect drug utilization. We study the impact of copay coupons on branded drugs first facing generic entry between 2007 and 2010. To overcome endogeneity concerns, we exploit cross-state and cross-consumer variation in coupon legality. We find that copay coupons increase branded sales by 80+ percent, entirely by reducing the sales of equivalent generics. During the five years following generic entry, we estimate that coupons increase total spending by $40 to $100 million per drug.

Bio
Leemore Dafny is a Professor of Strategy, the Herman Smith Research Professor in Hospital and Health Services, and Director of Health Enterprise Management (HEMA) at Kellogg.  Her research examines competitive interactions among payers and providers of healthcare services, and the intersection of industry and public policy. Dafny's work has been published in journals such as the American Economic Review and the New England Journal of Medicine, and featured in The New York Times, BusinessWeek, Bloomberg, and The Washington Post.
Current projects include studies of consolidation in the U.S. hospital industry and the kidney dialysis industry, products and pricing on the public health insurance exchanges, copayment coupons for prescription drugs, and the implications of for-profit ownership of insurance companies.
Dafny graduated summa cum laude from Harvard College and worked as a consultant with McKinsey & Company prior to earning her PhD in economics from the Massachusetts Institute of Technology.  She has won several teaching awards as well as Kellogg's leading research prize, the Stanley Reiter Best Paper award. Dafny is a Research Associate of the National Bureau of Economic Research, a Faculty Fellow at Northwestern's Institute of Policy Research, and a Board member of the American Society of Health Economists and the Health Care Cost Institute.
Dafny's expertise spans both the public and private sectors.  She currently serves on the Panel of Health Advisers for the Congressional Budget Office.  In 2012-2013, she served as Deputy Director for Healthcare and Antitrust in the Bureau of Economics at the Federal Trade Commission in Washington, DC.   Dafny advises companies, government agencies, and nonprofits on a variety of issues including antitrust matters, strategic decisions, and public policy.  

For additional information regarding the CPRC Seminar series, please visit: http://cupop.columbia.edu/events/seminar-series/cprc-seminars