Center for Policy Research

Working Paper

Health, Medical Innovation and Disability Insurance: A Case Study of HIV Antiretroviral Therapy

Perry Singleton

C.P.R. Working Paper No. 182

August 2015

Perry Singleton

Economics Department

Center for Policy Research

Health Policy

Perry Singleton

Abstract

This study examines the effect of health on SSDI outcomes. The effect is identified by a new antiretroviral therapy to treat the human immunodeficiency virus. Administrative data on SSDI applications come from the Disability Research File. According to the analysis, the new therapy had an immediate and persistent effect on program entry. By 1997, the therapy decreased applications by 35.2 percent and new awards by 36.7 percent. Among existing beneficiaries, the therapy decreased program exits through death, but did not substantially increase program exits for work. By 1999, the therapy increased HIV-related expenditures by $43.6 million.

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