THE ASSOCIATION OF INSURANCE TYPE WITH COSTS OF DISPENSED DRUGS

This study examines the association between types of prescription drug insurance coverage and the unit cost of dispensed drugs. Logistic reg ression and ordinary least squares regression were used to assess diff erences in the use of brand name and generic drugs and the unit cost o f dispensed brand name oi generic drugs across four insurance categori es: Medicaid, private third party, indemnity, and uninsured. The resul ts show that private third-party and indemnity prescriptions were more likely to he dispensed with brand name drugs. Also, indemnity patient s and the uninsured were dispensed brand name and generic drugs with l ower unit costs. The findings have ramifications for the design of pre scription drug insurance benefits and suggest that physicians may resp ond to the economic situation of their-patients when prescribing drugs .