Table 7.
Announcement and implementation effects for pharmaceutical prices by Medicare market share.
| Dependent variable: | Price |
Log(price) |
|---|---|---|
| (1) | (2) | |
|
| ||
| MMS*Year2001 | −1.2987 | −0.1006 |
| (10.673) | (0.134) | |
| MMS*Year2002 | 5.5946 | −0.0473 |
| (10.021) | (0.118) | |
| MMS*Year2003 | −4.5142 | −0.1458 |
| (10.656) | (0.115) | |
| MMS*Year2004 | −4.4471 | −0.1957* |
| (10.376) | (0.119) | |
| MMS*Year2005 | −1.2343 | −0.1451 |
| (10.988) | (0.117) | |
| MMS*Year2006 | −16.3658 | −0.2405* |
| (11.754) | (0.123) | |
| (MMS*2004-MMS*2003) – (MMS*2002-MMS*2001) | −6.8262 | −0.1033 |
| (10.349) | (0.142) | |
| (MMS*2005-MMS*2003) – (MMS*2003-MMS*2001) | 6.4955 | 0.0458 |
| (14.005) | (0.161) | |
| (MMS*2006-MMS*2005) – (MMS*2002-MMS*2001) | −22.0248* | −0.1488 |
| (12.032) | (0.147) | |
| Weighted by #Rx 02–03 | Y | Y |
| Year fixed effects | Y | Y |
| Drug fixed effects | Y | Y |
| Observations | 924 | 924 |
Notes:
***
p < 0.01
**
p < 0.05
*
p < 0.1.
Robust standard errors in parentheses. This regression is estimated at the drug-year level from Equation 3. The MMS is the fraction of prescriptions that are purchased by Medicare beneficiaries for each drug in the 2002–2003 pooled MEPS. The bottom panel presents linear combinations of the coefficients and their standard errors. MEPS 2000–2006.