TY  - JOUR
AU  - Frank,Richard G.
AU  - McGuire,Thomas G.
AU  - Normand,Sharon-Lise
TI  - Cost-Offsets of New Medications for Treatment of Schizophrenia
JF  - National Bureau of Economic Research Working Paper Series
VL  - No. 12643
PY  - 2006
Y2  - October 2006
UR  - http://www.nber.org/papers/w12643
L1  - http://www.nber.org/papers/w12643.pdf
N1  - Author contact info:
Richard Frank
Department of Health Care Policy
Harvard Medical School
180 Longwood Avenue
Boston, MA 02115
Tel: 617/432-0178
Fax: 617/432-1219
E-Mail: frank@hcp.med.harvard.edu

Thomas McGuire
Department of Health Care Policy
Harvard Medical School
180 Longwood Avenue
Boston, MA 02115
Tel: 617/432-3536
E-Mail: mcguire@hcp.med.harvard.edu

Sharon-Lise Normand
Harvard University
Harvard Medical School
Department of Health Care
180 Longwood Avenue
Boston, MA  02115-5899
E-Mail: normand@hcp.med.harvard.edu
AB  - Broad claims are frequently made that new medications will offset all or part of their costs by reducing other areas of Medicaid spending.  In this paper we examine the net impact on spending for new drugs used to treat schizophrenia.  We extend research in this area by taking a new approach to identification of spending impacts of new drugs.  We specify and estimate models of spending on treatment of schizophrenia using 7 years of Florida Medicaid data.  The estimates indicate that use of the new drugs result in net spending increases.  This may be due to increased adherence to treatment.
ER  -