As if the sheer human cost isn’t enough, the financial cost of the opioid epidemic cost the economy $95 billion in 2016. According to a new analysis from Altarum, $21.4 billion of that total was spent on treating patients who suffer from opioid abuse.
Quantifying the economic impact of the crisis, which in 2016 alone contributed to 53,054 overdose deaths, can sometimes hit harder and perhaps spur resolve among those who are a bit farther removed from the epidemic, as pointed out by Corey Rhyan, lead author of the report and senior analyst at Altarum, in a Modern Healthcare report.
Rhyan is quoted saying, “Putting a dollar value on [the epidemic] can be an impetus for more action.”
The costs, according to the analysis, break down this way: the vast majority—$43.2 billion—came from losses in the workforce due to deaths from opioids, the analysis found. Another $12.4 billion accounted for lost productivity from surviving opioid addicts. And within the health-care industry, costs from the epidemic were concentrated in emergency room visits, hospital admissions, ambulance use and Naloxone use.
Insurers were out paying $21.4 billion for the crisis last year, with Medicaid paying for the largest share at $8.7 billion. Rhyan says in the report that after Medicaid expansion in 2014, more people who suffered from opioid abuse became insured. The epidemic cost Medicare an estimated $6.4 billion, with private payers and the uninsured forking over a combined $6.3 billion.
The remaining costs taking a bite out of the economy were accounted for by criminal justice and education expenditures, and child and family assistance spending. The report finds that many 2016 cases of child neglect were associated with parents with opioid addiction. Child and family assistance spending related to the epidemic reached about $6.1 billion in 2016.
Rhyan also says in the report that the analysis only takes into account the economic burden and not the emotional impact on those addicted and their families. Such a cost can’t be monetized, but is just as important. Says Rhyan, “I think it takes both pieces to tell the story of this epidemic.”
Despite the massive damage that the epidemic has wreaked, not just on the economy, but in human terms, when the Trump administration finally declared it a national public health emergency, it did so without calling for new funding to support treatment efforts and was the target of withering criticism.
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