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For every $1 states spenddollar sign on substance misuse and addiction, 94 cents go to 'shovel up' the consequences instead of for treatment and prevention. TELL YOUR LEGISLATORS

Ensure Equal Coverage for Treatment

Equal coverage for drug and alcohol treatment requires health insurers to recognize addictions as a disease and provide coverage for treating alcohol and drug addiction that is equal to treatment coverage for other chronic, relapsing disorders such as diabetes and hypertension.

More than 70% of people who currently use illicit drugs, as well as 75% of individuals who are alcoholics, are employed. Many insurance policies offered by employers discriminate against people with alcohol or drug addiction by requiring greater patient burden. When a person seeks treatment for their addiction, they are required to pay higher deductibles and copayments and receive less coverage for number of visits, days of coverage, and annual or lifetime dollar limits for treatment.

Although treatment outcomes of alcoholism and drug addiction compares favorably with that of other chronic recurring disorders, many insurers have not yet granted equal status to this health issue. It is in the interests of insurers, employers, medical providers, and patients to cover and treat substance use disorders.

Four states have comprehensive parity for all citizens, Connecticut, Maryland, Minnesota, and Vermont. Seven other states require some lesser level of coverage. The Alcohol Policy Information System lists the different coverage offered for each state.

All Federal employees have parity. The Federal Employee Health Benefit Plan is the largest employer-sponsored health program in the country, covering 9 million federal employees, their families, and retirees.

An analysis of 11 states studies by Ensuring Solutions found that

  • Equitable coverage reduces pressures on financially distressed states' budgets (and the tax burden to states' citizens and businesses). Oregon, for example, found the state saves $5.62 in tax-supported health, corrections and welfare costs for every state dollar spent on people who complete treatment.5
  • Parity increases the number of people who receive treatment, thereby reducing their long-term cost to the state. In addition, more get treatment as outpatients and inpatients, while the length of (more expensive) hospital stays is sharply reduced.
  • The benefits of mandatory employment-based insurance parity are substantial.

According to a PricewaterhouseCoopers actuarial analysis, the cost of parity to individual businesses goes down sharply when all or most businesses in a state are required to have equal coverage.