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.

Additional Metadata
Keywords Discrete choice experiments, Pharmacy market, Preferred provider choice, Status quo bias, Willingness to pay
Persistent URL dx.doi.org/10.1007/s10754-009-9055-5, hdl.handle.net/1765/15562
Citation
Boonen, L.H.H.M., Schut, F.T., Donkers, A.C.D., & Koolman, A.H.E.. (2009). Which preferred providers are really preferred? Effectiveness of insurers' channeling incentives on pharmacy choice. International Journal of Health Care Finance and Economics, 9(4), 347–366. doi:10.1007/s10754-009-9055-5