Universal Occupational Licensing Recognition Boosts Healthcare Access

Strategic Insights -

The Federal Reserve Bank of Minneapolis has published a comprehensive study, "Does Universal Occupational Licensing Recognition Improve Patient Access? Evidence from Healthcare Utilization," which explores the impact of universal occupational licensing recognition (ULR) on healthcare access. The study, led by Yun Taek Oh and Morris Kleiner, utilized various datasets to analyze the effects of ULR on healthcare utilization and the local labor supply of physicians. The findings indicate that adopting ULR leads to a significant increase in the proportion of individuals accessing healthcare, particularly among older individuals, and reduces the proportion of individuals not getting healthcare services due to costs.

Key Takeaways:

  • Adopting universal occupational licensing recognition (ULR) increases the proportion of individuals accessing healthcare, particularly among older individuals.
  • The proportion of individuals not getting healthcare services because of costs is reduced with ULR.
  • The positive effect of ULR on healthcare utilization is closely related to the increase in out-of-state practitioners, including temporary and telehealth physicians.
  • There is no change in interstate migration of physicians, but an increase in out-of-state practices is observed.
  • The adoption of ULR may lead to a more efficient regional distribution of physicians and result in greater access to healthcare.
  • The study uses data from several sources, including the Behavioral Risk Factor Surveillance System, IPUMS-USA, IPUMS-CPS, and the Doctors and Clinicians National Downloadable File from the Centers for Medicare & Medicaid Services.
  • The findings of the study provide empirical evidence that the effects of ULR are due to the universal reciprocity of physician licenses, rather than other factors.

Statistics:

  • 8.3% increase in the proportion of individuals accessing healthcare among older individuals (ages 65 and above) after adopting ULR.
  • 4.1% reduction in the proportion of individuals not getting healthcare services because of costs after adopting ULR.
  • 136% increase in out-of-state practices among physicians with ULR.
  • No change in interstate migration of physicians after adopting ULR.
  • The study uses data from 2011 to 2019, covering over 10 million individuals.

Sources:

  • "Does Universal Occupational Licensing Recognition Improve Patient Access? Evidence from Healthcare Utilization" by Yun Taek Oh and Morris Kleiner, Federal Reserve Bank of Minneapolis, Economic Research report No. 671, August 4, 2025.
  • Behavioral Risk Factor Surveillance System.
  • IPUMS-USA.
  • IPUMS-CPS.
  • Doctors and Clinicians National Downloadable File from the Centers for Medicare & Medicaid Services.