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Correspondence
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Volume 350:1057 March 4, 2004 Number 10
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Effect of Incentive-Based Formularies on Drug Utilization and Spending

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 by Huskamp, H. A.
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To the Editor: Huskamp et al. (Dec. 4 issue)1 found that incentive-based formularies affect not only prescription-drug costs, but also patients' compliance with medications. Why do patients use less medication when offered more choice? One possible answer: incentive-based formularies create more complexity than choice.

Three-tiered pharmaceutical benefits are based on the assumption that physicians can serve as agents for their patients and prescribe the least expensive among similarly effective formulary options. But the average physician sees patients who, in total, are covered by more than 13 health plans,2 each offering a unique formulary with individualized incentives. Unfortunately, physicians often inadvertently . . . [Full Text of this Article]


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