Which preferred providers are really preferred? Effectiveness of insurers’ channeling incentives on pharmacy choice
- First Online:
- Cite this article as:
- Boonen, L.H.H.M., Schut, F.T., Donkers, B. et al. Int J Health Care Finance Econ (2009) 9: 347. doi:10.1007/s10754-009-9055-5
- 176 Downloads
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.