OBJECTIVES:  Disease modifying drugs are not yet available for the management of individuals with Chronic Obstructive Pulmonary Disease (COPD). Statin therapy, due to its anti-inflammatory properties is under consideration for the management of COPD. This study examined the relationship between statin therapy and COPD-specific outcomes. METHODS: Retrospective longitudinal dynamic cohort design using Medicaid claims data from multiple years (2005-2008) was utilized. Statin therapy was identified from the prescription drug file using the National Drug Codes (NDC). COPD-specific outcomes such as hospitalizations, emergency room and outpatient visits were identified based on a primary diagnosis of COPD.  Multivariable logistic regressions with Inverse Probability Treatment Weights (IPTW) were used to examine the relationship between statin therapy and COPD-specific outcomes. The relationship between multimorbidity, statin medications and COPD-specific outcomes was tested using an interaction term. Secondary analyses with duration of stain therapy were also conducted. All analyses will be conducted using SAS version 9.3. RESULTS: The study included 19,060 Medicaid beneficiaries with newly-diagnosed COPD, out of whom 30.3% beneficiaries received statins during the 1-year baseline period.  Compared to adults without statin therapy, those with statin therapy had significantly lower rates of COPD-specific hospitalizations (4.7% vs. 5.2%; p<0.05), emergency room visits (13.4% vs. 15.4%; p<0.001) and outpatient visits (41.4% vs. 44.7%; p<0.001). Even after adjusting for observed selection bias with IPTW technique, adults with statin therapy were less likely to have COPD-specific hospitalizations (AOR: 0.76; 95% CI: 0.66, 0.87), emergency room visits (AOR: 0.81; 95% CI: 0.75, 0.89) and outpatient visits (AOR: 0.86; 95% CI: 0.80, 0.91) compared to those without statin therapy. Adults with multimorbidity and statin therapy were less likely to have COPD-specific outcomes. CONCLUSIONS: Statin therapy was associated with reduction in COPD-specific outcomes. These findings may suggest beneficial effects of statin among newly diagnosed COPD patients and warrant further clinical trial investigation.