Physicians write fewer prescriptions in states with payment disclosure laws, study finds

Physicians prescribe fewer drugs in states that require drug and devicemakers to report payments to clinicians or hospitals, suggests a study published in the journal SSRN.

To assess the effect of state payment disclosure laws on physicians' prescribing habits, researchers analyzed claims data for outpatient prescriptions from a major insurer. Researchers focused on claims filed on behalf of Massachusetts residents from 2008 to 2011 for three drug classes: statins, antidepressants and antipsychotics.

Massachusetts in 2009 enacted a law requiring drug and devicemakers participating in federal healthcare programs to report payments or gifts given to physicians and teaching hospitals.

Researchers found physicians prescribed fewer brand name medications after the state implemented the disclosure law. After implementation of the law, brand name statin prescriptions decreased by an average of 48 to 59 percent, brand name antidepressant prescriptions fell by an average of 46 to 54 percent, and brand name antipsychotic prescriptions dropped by 40 to 45 percent, based on the prescribing physician.

Generic drug prescriptions also decreased for all three drug classes. Generic statins dropped by an average of 38 to 46 percent, antidepressants fell by 32 to 41 percent, and antipsychotics decreased by 38 to 40 percent.

"[T]he effect is highly heterogeneous across brands and physician groups, and … the decrease in prescription is likely a consequence of increased self-monitoring among physicians to curb over-diagnosis," the author's concluded.

 

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