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Information, Spillovers, or Hassle Costs? Effects of Medicaid Prior Authorization on Preschool Antipsychotic Prescribing

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Listed:
  • Janet Currie
  • Kate Musen

Abstract

We examine information versus hassle costs in the context of Medicaid prior authorization requirements for preschool antipsychotic prescribing. Such prescribing increased in the 1990s, despite substantial side effects and the absence of FDA approval. State Medicaid programs began to require prior authorization for antipsychotic prescribing to young children after 2005. We evaluate these policies using hand-collected policy data and national prescription data for 2006-2019. We find that prior authorization reduced prescriptions to children under six by 22-30% in the two years after implementation. There were no effects on privately insured or older children, suggesting little role for information spillovers.

Suggested Citation

  • Janet Currie & Kate Musen, 2025. "Information, Spillovers, or Hassle Costs? Effects of Medicaid Prior Authorization on Preschool Antipsychotic Prescribing," NBER Working Papers 34369, National Bureau of Economic Research, Inc.
    • Handle: RePEc:nbr:nberwo:34369
    Note: CH EH
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    More about this item

    JEL classification:

    • I12 - Health, Education, and Welfare - - Health - - - Health Behavior
    • I13 - Health, Education, and Welfare - - Health - - - Health Insurance, Public and Private
    • I18 - Health, Education, and Welfare - - Health - - - Government Policy; Regulation; Public Health

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