Center for Business and Economic Research - Ball State University

A Cost-Benefit Analysis of Pseudoephedrine Drug Policy in Indiana

A Cost-Benefit Analysis of Pseudoephedrine Drug Policy in Indiana

Published March 11, 2015

Pseudoephedrine (PSE) is commonly found in cold, cough, allergy, and sinusitis relief medicines.­ However, PSE is also used in the production of meth.­

The objective of this study is to estimate the impact of transitioning PSE from over-the-counter to prescription-only. Issues ­include Medicaid spending, cost to households, loss in sales tax revenues to the state government, and productivity loss to the employers in Indiana using both models of historical data and simulation models of proposed changes.

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Tags: indiana, health, law and public policy

Authors: Srikant Devaraj, Michael J. Hicks, Karthik Balaji