CARE Seminar: Parker Rogers, Indiana University

Speaker

Parker Rogers, Indiana University

Biography

I'm an Assistant Professor at the Kelley School of Business, Indiana University, where I research the impact of regulation on health care product markets. I am also an invited researcher with J-PAL's Science for Progress Initiative.

Prior to joining Kelley, I was a Postdoctoral Fellow in Aging and Health Research at the National Bureau of Economic Research (2023–2024). I completed my Ph.D. in Economics at the University of California, San Diego in 2023.

Title

"The Long-Run Impacts of Regulated Price Cuts: Evidence from Medicare"

Abstract

We investigate the effects of substantial Medicare price reductions in the medical device industry, which amounted to a 61% decrease over 10 years for certain device types. Analyzing over 20 years of administrative and proprietary data, we find these price cuts led to a 29% decline in new product introductions and an 80% decrease in patent filings, indicating significant reductions in innovation activity. Manufacturers reduced market entry and relied more heavily on outsourcing to other producers, which was associated with higher rates of product defects. Our calculations suggest the value of lost innovation may fully offset the direct cost savings from the price cuts. We propose that better-targeted pricing reforms could mitigate these negative effects. These findings underscore the need to balance cost containment with incentives for innovation and quality in policy design.