Tom
Classen

Labor Market Effects of Removing Prior Authorization for Buprenorphine in Medicaid Programs

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Authors:

Tom Classen

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This paper evaluates how the removal of prior authorization requirements for buprenorphine affects labor market outcomes among Medicaid enrollees. Buprenorphine is a treatment used for opioid use disorder, yet prior authorizations often delay prompt access and act as barriers to receiving care. Using IPUMS USA data merged with a state-level dataset documenting prior authorization policies between 2015 and 2019, this study analyzes whether state-level Medicaid prior authorization removal for buprenorphine translates into changes in labor force participation, employment, hours worked, and total personal income. The analyses utilizes state and year fixed effects while controlling for demographic characteristics, and further estimates heterogenous effects across age, race, and sex subgroups. Results for this analysis suggest small but statistically meaningful improvements in labor force participation, usual hours worked, and income upon removal of prior authorization, while employment rates show no significant change. Demographic patterns reveal uneven effects, with certain subgroups, in particular young men of other racial backgrounds, experiencing pronounced shifts in labor outcomes. Overall, the findings suggest that reducing institution and administrative barriers to buprenorphine access may modestly improve labor market outcomes among Medicaid enrollees, though the magnitude varies across populations. SOOO OH OHSS OC OOHOS CGC OOSOHOHOHOSCTOCOCOC OHS OO COO OSCOOOOOOCOCHO DDDDIDIDIDIDDIBDPIDHDIIDDHDDDHDDDDIDIDVDIIIIISD '4 ese CAU RSE INOERAD RESEARCH SYMPOSIUM @ Many Thanks to Our Generous Sponsors! UNIVERSITY OF ILLINOIS CHICAGO & DEPAULUNIVERSITY 'i LOYOLA tages «6 UNIVERSITY CHICAGO Preparing people to lead extraordinary lives ILLINOIS INSTITUTE W OF TECHNOLOGY Yi ILLINoIs INSTITUTE OF TECHNOLOGY ) Northwestern 27 University Baca THE UNIVERSITY OF wy CHICAGO

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Chicago Area Undergraduate Research Symposium

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Co-authors:

Tom Classen