1) The paper analyzes how patient compliance with medication regimens (the input) affects health outcomes (the output) for diabetes patients based on health production function theory. 2) Studies show that high prescription co-pays reduce medication adherence and negatively impact health markers like blood glucose levels, leading to increased costs from complications. 3) For diabetes patients requiring multiple medications, high co-pays present a significant financial barrier, reducing compliance and resulting in worse health outcomes according to the studies.