Linn Hjalmarsson, Christian P.R. Schmid, and Nicolas Schreiner have published a new working paper on the impact of patient information on generic drug substitution. The authors find that targeted information provided to buyers of branded medications nearly quadruples the likelihood of switching to a cheaper generic alternative. In contrast, financial incentives have a significantly smaller effect, underscoring that market mechanisms alone are insufficient without adequately informed patients in health policy. Reducing informational barriers could thus help save healthcare costs more efficiently while empowering patients to make decisions in their best interest.
The working paper, titled “A Prescription for Knowledge: Patient Information and Generic Substitution” is published as a WWZ Working Paper by the University of Basel and can be accessed here.