Health insurance and the uptake of new drugs in the United States
This chapter investigates the effect of health insurance coverage on the use of relatively new prescription drugs. It focuses on statins, a class of lipid-lowering drugs that were considered a major breakthrough after a number of important clinical trials were published. The chapter is organized as follows: Section 2firstly it briefly reviews the literature on technology diffusion and the relationship between insurance and consumption, and also covers the institutional setting in the United States. Next it offers a model of pharmaceutical adoption. The next section provides the results of the analysis. Finally it concludes with a discussion of the results and the policy implications.
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