Crafting the Right Copay Program
- Measuring true return from copay programs is critical for long-term brand success. Many brands overstate returns by not accounting for all spending or assuming all claims are incremental.
- To find incremental volume, brands must understand patient out-of-pocket costs based on managed care coverage and consider abandonment rates which increase with higher copays.
- The greatest potential for incremental volume and lowest costs exist at higher copay levels, as lower copays see little abandonment and claims are likely non-incremental. Focusing offers in higher copay ranges can optimize programs.