What is likely to happen to out-of-pocket costs and total drug costs for this segment of drug therapy?

s insurance plan requires a $5 copay for the generic drug with a price at the pharmacy Show more Your patient’s insurance plan requires a $5 copay for the generic drug with a price at the pharmacy of $10 that you are prescribing for her. The (virtually equivalent) brand name drug priced at $160 requires her to pay a 20% copay. a. The two drugs in this example are (pick one) __ substitutes for each other __ complements for each other ___ outputs of production b. What are these tiered prices intended to do for her insurance companys payout for its policy holders their premiums and ultimately health care costs? Comment briefly on how economic theory has been applied to this area of health care consumption. Now the manufacturer of the brand name drug offers your patient (and other consumers) a copay card that will cover up to $30 of the patients copay when she purchases their brand drug. c. What is likely to happen to the total quantity demanded of the generic drug? d. What is likely to happen to out-of-pocket costs and total drug costs for this segment of drug therapy? Show less

 

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