Spending Money on Treatment Offsets Medical CostsJuly 17, 2001
Research Summary
Evaluation of a pilot treatment program in the state of Washington found a solid medical cost offset resulting from spending money on addiction treatment services, Alcoholism & Drug Abuse Weekly reported July 2.The study found that the average monthly medical bills of individuals with a permanent disability who received addiction treatment were $774 lower than those disabled residents who needed treatment but didn't receive it.
According to the preliminary report, the average before-and-after medical costs for the group that received addiction treatment were $403 and 590 a month, respectively, while the costs for the group that didn't receive treatment were $573 and $1,639, respectively.
The Washington Division of Alcohol & Substance Abuse generated more medical savings in the pilot program than originally promised to state legislators. As a result, lawmakers approved an appropriation of $2.9 million last month for addiction treatment for those receiving Supplemental Security Income (SSI).
"What this says is legislators and policymakers believe that if they don't pay for our services, it's going to cost them more to pay for the consequences elsewhere," said Kenneth D. Stark, director of the Division of Alcohol & Substance Abuse.
He added, "If you want to mitigate expensive, hospital-based care, you need to provide quality addiction treatment, or you will cost-shift to other systems, including criminal justice. Our programs are indeed disease-prevention, health-promotion programs that save Medicaid dollars."
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