Table 2.
Elasticity estimates for ten largest common drugs and therapeutic classes
| Therapeutic Class (1) | Drug example (2) | Claim share (3) | %3Q (4) | %3OOP (5) | Estimated elasticity (6) |
|---|---|---|---|---|---|
| HMG-CoA Reductase Inhibitors | Lipitor | 0.077 | −31.9 | 136.1 | −0.23 (0.002) |
| beta-Adrenergic Blocking Agents | Propranolol | 0.067 | −17.5 | 125.5 | −0.14 (0.003) |
| Angiotensin-Converting Enzyme Inhibitors | Lisinopril | 0.047 | −14.1 | 87.7 | −0.16 (0.007) |
| Thiazide Diuretics | Diuril | 0.045 | −27.0 | 84.2 | −0.32 (0.006) |
| Thyroid Agents | Levothyroxine | 0.038 | −18.1 | 21.4 | −0.85 (0.029) |
| Dihydropyridines | Amlodipine | 0.031 | −19.5 | 138.0 | −0.14 (0.004) |
| Proton-pump Inhibitors | Omeprazole | 0.030 | −26.6 | 243.0 | −0.11 (0.002) |
| Selective Serotonin-reuptake Inhibitors | Prozac | 0.023 | −16.4 | 111.5 | −0.15 (0.005) |
| Angiotensin II Receptor Antagonists | Losartan | 0.022 | −29.3 | 74.8 | −0.39 (0.008) |
| Opiate Agonists | Morphine | 0.022 | −5.5 | 131.9 | −0.04 (0.007) |
| Drug name (1) | Brand/Generic (2) | Claim share (3) | %3Q (4) | %3OOP (5) | Estimated elasticity (6) |
|---|---|---|---|---|---|
| Simvastatin | Generic | 0.034 | −10.8 | 110.8 | −0.10 (0.006) |
| Lisinopril | Generic | 0.028 | −12.6 | 57.3 | −0.22 (0.014) |
| Atorvastatincalcium | Brand | 0.022 | −48.3 | 143.3 | −0.34 (0.003) |
| Levothyroxinesodium | Brand | 0.021 | −21.6 | 13.9 | −1.56 (0.056) |
| Levothyroxinesodium | Generic | 0.018 | −13.9 | 38.8 | −0.36 (0.027) |
| Amlodipinebesylate | Generic | 0.018 | −17.5 | 123.5 | −0.14 (0.007) |
| Omeprazole | Generic | 0.017 | −24.3 | 242.9 | −0.10 (0.003) |
| Warfarinsodium | Generic | 0.017 | −19.2 | 82.8 | −0.23 (0.011) |
| Hydrocodonebitartrateandac | Generic | 0.017 | −3.7 | 98.5 | −0.04 (0.011) |
| Hydrochlorothiazide | Generic | 0.016 | −20.4 | 38.1 | −0.54 (0.025) |
Table reports the estimated elasticities for the ten most frequently claimed therapeutic classes (top panel) and drugs (bottom panel). Column (3) reports the share of each class’ claims in the baseline sample. Column (4) reports the estimated percentage change in the observed (relative to the predicted) claim propensity in December for individuals who enter the donut hole. Column (5) reports the associated percentage change in the out-of-pocket price. Elasticities -- reported in clumn (6) -- are then estimated based on equation (1), with standard errors in parenthesis (based on 100 bootstrap samples from which we estimate the change in claim propensity). See Section II for more details.