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Treatment Works factsheet

The Financial Costs of Substance Abuse and Treatment

Substance Abuse Treatment Planning Guide and Checklist for Treatment-Based Drug Courts, US Department of Health and Human Services, 1997.

The Costs of Alcohol and Drug Abuse

  • Alcohol and drug abuse cost over $166 billion each year in lost productivity, law enforcement, criminal case processing, treatment and health care (Robert Wood Johnson Foundation, 1993).

  • An estimated 27.8 million Americans need substance abuse treatment (National Household Survey on Drug Abuse, 1996).

  • 33 percent of all criminal justice costs relate to substance abuse (Robert Wood Johnson Foundation).

  • More than 70 conditions requiring hospitalisation, most notably cancer, heart disease and HIV/AIDS, have risk factors associated with substance abuse, and $ 1 of every $5 Medicaid spends on hospital care is attributable to substance abuse or a related condition.

Treatment Is a Good Investment

  • A recent California study found that $1 invested in substance abuse treatment saves taxpayers $7 in future costs.

  • An earlier UCLA study estimated that $1 invested in treatment could save $11.54 in combined medical and social costs.

  • In Oregon, for every $1 spent on substance abuse treatment $5.60 was returned in public savings on reduced welfare, food stamps, Medicaid, crime courts and imprisonment. $14.9 million in tax funds spent in 1991-92 on treatment produced at least $83.1 million in avoided costs over the next three years.

  • In Minnesota, each $1 spent on treatment earned an $.80 offset within the first year through reductions in costs associated with clients' medical, hospital, psychiatric, justice and other costs.

Treatment Reduces Substance Abuses

  • Preliminary results from a CSAT-funded treatment evaluation show that during treatment:

    • Crack use decreased by 85 percent

    • Cocaine use decreased by 62 percent

    • Heroin use decreased by 40 percent

    • Marijuana decreased by 73 percent

    • Alcohol use decreased by 67 percent

  • The same evaluation shows that one year after treatment:

    • Crack use remained down by 60 percent

    • Cocaine use remained down by 42 percent

    • Heroin use remained down by 45 percent

    • Marijuana use remained down by 41 percent

    • Alcohol use remained down by 25 percent

Treatment Reduces Health Care Costs

  • Blue Cross/Blue Shield found that families" health care costs dropped by 50 percent after treatment, showing a reduction from $100 a month in the 2 years prior to treatment to $13.34 per month in the fifth year after treatment.

  • Aetna Federal Employees Health Benefit Plan showed overall health care costs of alcoholics rose from $130 to $1,370 per month prior to treatment; three years after treatment health care costs were $190 per month.

  • Two years after treatment, participants showed a 40 percent reduction in health care costs (presented: Association for Health Services Research, annual meeting, 1993).

  • Alcohol Health & Research World reported findings that 50 percent of the costs of alcohol and drug abuse treatment are offset within one year by subsequent reductions in medical costs by the affected family, and not just the primary patient.

  • Injecting drug use is the primary mode of transmission of HIV among women, and is responsible for 71 percent of AIDS cases among women.'4 During treatment, 4 percent of participants became HIV-positive, compared with 16 percent among those who were not in treatments The lifetime costs to care for one AIDS patient are roughly $85,000.

  • $43,000 to $145,000 can be saved for each pregnancy and delivery uncomplicated by alcohol or substance abuse. In a CSAT-funded program 95 percent of women reported uncomplicated, drug-free births after one year of treatment.

Treatment Reduces Crime and-Violence & Supports Law Enforcement

  • Criminal behavior decreased by 95 percent during treatment, and by 76 percent one year after treatments.

  • In California, criminal behavior decreased after one year in treatment; drug sales dropped by 68 percent; breaking and entering dropped by 61 percent; selling sex dropped by 54 percent; use of weapon/physical force dropped by 75 percent

  • In Oregon, treatment provided in 1991-92 resulted in more than 58,000 fewer crimes in the three years that followed.

  • Arrests decreased one year after treatment in the following States (compare these figures with the national average rate of recidivism/repeat arrests without treatment at 47 percent)

    • Ohio arrests dropped by 90 percent

    • Texas arrests dropped by 80 percent

    • California arrests dropped by 60 percent

    • Iowa arrests dropped by 50 percent

  • Oregon found that persons who completed treatment reduced their involvement with child protective services by 50 percent, while those who did not complete treatment reduced their involvement by 22 percent.

  • Treatment is an effective partner in court programs. Preliminary results from the CSAT funded D.C. Drug Court program show that drug use dropped from 100 percent to 40 percent during treatment, compared with a reduction from 100 percent to 70 percent for those not receiving treatment.

  • Treatment can effectively support law enforcement efforts. A Rand study found that treatment is 23 times more effective in reducing cocaine consumption than source country control through interdiction methods, and 7.3 times more effective than domestic law enforcement methods.

Treatment Reduces Welfare Costs

  • Employment increased by 44 percent during treatment, and stabilized at an increase of 94 percent after one year of treatment.

  • $6,000 is saved for each woman who leaves welfare and becomes employed. A CSAT funded evaluation showed that one year after treatment, 40 percent of the women eliminated or reduced their dependence on welfare.

  • Oregon found that annual earnings for those who completed treatment ranged from 49 percent higher for those who completed outpatient treatment to 136 percent higher among those who completed methadone treatment.

Federal-State Partnerships Support Effective Treatments

  • SAPT block grant funds contribute 44 percent of funds expended national for substance abuse prevention and treatment.

  • SAPT block grant funds account for 12-87 percent of a State's substance abuse expenditures, and in 16 States represented the majority of substance abuse funds in that state.

  • SAPT block grant funds supported publicly funded treatment serving 3.8 million persons.

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