When prices were included in television advertisements for higher-cost drugs, consumers were less likely to ask their physicians about the drug, less likely to research the drug online and less likely to take the drug, according to a consumer behavior study published in JAMA Internal Medicine.
For the study, researchers completed a randomized trial with 580 participants. The participants were instructed to assume they were recently diagnosed with type 2 diabetes. From there, participants were randomly assigned to view one of five advertisements for a fictitious diabetes drug.
The control advertisement didn't disclose the drug's price. The other four disclosed a $50 per month price with a modifier, a $50 per month price without a modifier, a high $15,500 per month price with a modifier and a high $15,500 without a modifier. The modifier conditions included a statement that eligible patients may be able to get the drug free.
After viewing an advertisement, participants completed a questionnaire measuring their likelihood of asking their physician about the drug, asking an insurer about a drug, researching the drug online and taking the drug.
Five study insights:
1. For the lower-priced drugs, the price disclosure didn't alter consumer responses. They were still likely to ask their physician and insurer about the drug, research the drug online and were interested in taking the drug.
2. For the high-priced drug, the price disclosure significantly reduced the likelihood that a participant would ask their physician about a drug, ask their insurer, research the drug and take the drug.
3. However, the results were significantly mitigated with the high-price drug when the modifier was included.
4. The behavioral experiment sought to determine whether including list prices in television ads would affect consumer behavior. In October 2018, CMS proposed requiring drugmakers to disclose drug prices in their direct-to-consumer television advertisements
5. Researchers noted some limitations, including that actual patients may respond differently than experiment patients. In addition, results may not be generalizable to all types of drugs across therapeutic classes.
Access the full report here.