We study the demand response to non-linear price schedules using data on insurance contracts and prescription drug … purchases in Medicare Part D. Consistent with a static response of drug use to price, we document bunching of annual drug …. Consistent with a dynamic response to price, we document a response of drug use to the future out-of-pocket price by using …

. Recent proposals call for price-based solutions, such as opioid taxes and removal of opioids from insurance formularies …. However, there is limited evidence on how opioid consumption responds to price stimuli. This study addresses that gap by … exogenous change in out-of-pocket drug prices. I find that new users have a relatively high price elasticity of demand for …