(Press-News.org) In 2016, Poland introduced a nationwide policy eliminating all out-of-pocket costs for prescription drugs prescribed by healthcare professionals to individuals aged 75 and older. A new study published in Health Economics finds that the policy reduced average out-of-pocket medication spending by 23% and cut catastrophic drug expenses by 62%, indicating substantial financial protection during major health shocks.
The financial gains, however, were not evenly distributed. The evidence suggests that higher-income and urban households benefited more, pointing to the possibility that the policy may have unintentionally widened existing financial disparities among older adults.
The study also documents unintended behavioral responses. With lower medication costs and greater insurance against future health shocks, some older adults increased spending on goods such as unhealthy food, alcohol, and cigarettes.
“The program reduced financial stress for many older adults, which is good news. But when people feel more insured against health costs, they may change other spending habits in ways that can partially offset the policy’s overall impact,” said corresponding author Krzysztof Zaremba, PhD, of Instituto Tecnológico Autónomo de México (ITAM).
URL upon publication: https://onlinelibrary.wiley.com/doi/10.1002/hec.70083
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About the Journal
Health Economics is an international health policy journal publishing articles on all aspects of global health economics. We welcome theoretical contributions, empirical studies, and analyses of health policy from the economic perspective. With a wide scope, Health Economics welcomes contributions on the valuation, determinants and definition of health, health care supply and demand, planning and market mechanisms, treatment micro-economics, and health care system performance.
About Wiley
Wiley is a global leader in authoritative content and research intelligence for the advancement of scientific discovery, innovation, and learning. With more than 200 years at the center of the scholarly ecosystem, Wiley combines trusted publishing heritage with AI-powered platforms to transform how knowledge is discovered, accessed, and applied. From individual researchers and students to Fortune 500 R&D teams, Wiley enables the transformation of scientific breakthroughs into real-world impact. From knowledge to impact—Wiley is redefining what's possible in science and learning. Visit us at Wiley.com and Investors.Wiley.com. Follow us on Facebook, X, LinkedIn and Instagram.
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How does universal, free prescription drug coverage affect older adults’ finances and behaviors?
2026-02-11
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