Tuesday, July 3, 2007

Patients Use Less Medicine When They Must Pay More, Study Finds

Patients use fewer prescription drugs when they have to pay more for the medicines, according to research that suggests shifting health-care costs to consumers may lead to more serious illness over time.

Consumers spend 2 to 6 percent less on the drugs for every 10 percent increase in out-of-pocket costs, according to a review of 132 studies released today by the Rand Corp., a Santa Monica, California-based public policy institute.

Companies seeking to hold the line on health-care spending are requiring employees to pay higher deductibles for insurance or offering co-insurance plans that split costs. A study this year in the journal Health Affairs found consumers may spend $440.8 billion out of pocket in 2016, 76 percent more than in 2006. More study is needed to determine if such increases will cause consumers to skip necessary treatment, researchers said.

``For patients with certain chronic illnesses, when you increase cost sharing on the pharmacy side, you end up with more hospitalizations and more use of emergency departments,'' said Dana Goldman, the study's lead author and Rand's director of health economics, in a telephone interview yesterday. The research was presented today in the Journal of the American Medical Association

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