The impact of state policy on the costs of HIV infection

There is substantial variation in the generosity of public assistance progr ams that affect HIV+ patients, and these differences should affect the econ omic outcomes associated with HN infection. This article uses data from a n ationally representative sample of HIV+ patients to assess how differences across states in Medicaid and AIDS Drug Assistance Programs (ADAP) affect c osts and labor marker outcomes for HIV+ patients in care in that state. Mak ing ADAP programs more generous in terms of drug coverage would reduce per patient total monthly costs, mainly through a reduction in hospitalization costs. In contrast, expanding ADAP eligibility by increasing the income thr eshold would increase the total cost of care. Expanding eligibility for Med icaid through the medically needy program would increase per patient total costs, but full-time employment would increase and so would monthly earning s. The authors conclude that more generous state policies toward HIV+ patie nts-especially those designed to provide access to efficacious treatment-co uld improve the economic outcomes associated with HIV.