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Which preferred providers are really preferred? Effectiveness of insurers' channeling incentives on pharmacy choice
Lieke H H M Boonen1, Frederik T Schut, Bas Donkers
1Institute of Health Policy and Management, Erasmus University Medical Center, Rotterdam, The Netherlands. boonen@bmg.eur.nl
Abstract:
Efficient contracting of health care requires effective consumer channeling. Little is known about the effectiveness of channeling strategies. We study channeling incentives on pharmacy choice using a large scale discrete choice experiment. Financial incentives prove to be effective. Positive financial incentives are less effective than negative financial incentives. Channeling through qualitative incentives also leads to a significant impact on provider choice. While incentives help to channel, a strong status quo bias needs to be overcome before consumers change pharmacies. Focusing on consumers who are forced to choose a new pharmacy seems to be the most effective strategy.
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