Lower co-pays can lead to smaller total health care costs, study finds

High prescription drug co-payments are associated with lower medication adherence and higher total health care costs, according to a new study published this month in the Journal of Occupational and Environmental Medicine. The study, funded by UK drug major GlaxoSmithKline, investigated the effects of varied co-payment levels on oral diabetes medication adherence, health resource utilization and total health costs for US firm PPG Industries' employees, retirees and dependents.

In comparing medication adherence and health care costs for patients with diabetes, PPG noted that those with lower co-pays had better adherence to oral diabetes drugs, and averaged $3,116 less per year in total health care costs than those in the highest co-payment group.

Poor medication adherence can be attributed to several factors.The effects of high prescription co-pays have been studied extensively since they have often been used by employers and insurers in an attempt to contain spiraling drug costs for chronic diseases, such as diabetes, and to prevent individuals from seeking unnecessary medical care. Increasing co-payments has been shown to decrease use of medications for chronic conditions.