Specifically, expanding Medicare coverage of SUD treatment would:

"Incur an additional $1.9 billion annually to cover 75,637 residential treatment episodes, 116,029 intensive outpatient episodes, and 58,890 visits with counselors;
Provide savings of $1.6 billion annually through reduced spending on treating medical conditions caused by untreated SUD and fewer SUD-related hospitalizations and emergency department visits; and
Result in a net impact on Medicare spending of $362 million per year, or approximately 0.04% of the total Medicare budget. (Total Medicare spending in 2020 was $825.9 billion)."

"The lack of Medicare coverage for SUD treatment is penny wise and pound foolish," says Ellen Weber, LAC's Senior Vice President for Health Initiatives. "It leaves millions of beneficiaries without adequate treatment of their substance use disorder until their conditions become acute enough to require hospitalization. Medicaid and the VA both cover comprehensive SUD treatment. Why are our nation's older adults denied the opportunity to receive lifesaving healthcare? It's time for Medicare to cover the full range of SUD treatment services and providers – it just makes sense, both financially and in terms of promoting equitable access to quality care."

Instant Insights /

Adding SUD coverage could offset Medicare costs, says study

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