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Economic Benefit of Chemical Dependency Treatment to Employers

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Topics: Cost-effectiveness | Employer-Sponsored Coverage | State Data | Substance Abuse | Treatment

Using California data from the Substance Abuse Treatment Support System, this study estimates the economic benefit of chemical dependency treatment for employers.  The study revealed reductions in the number of patients missing work, arriving late to work, being less productive at work, and getting into confrontations while at work.  The economic value of treatment varied by utilization rate and the employee's salary level.  For a utilization rate of 0.9% and a mean annual salary of US $45,000, the net benefit of treatment was US $1,538 for >= 61 days of treatment.  The authors conclude that, based on their figures a mean annual salary of $36,565 and ignoring medical cost-offsets and indirect benefits, employers break even on an investment of $30 per member per year. 

Jordan, N., G. Grissom, et al. (2008). Economic benefit of chemical dependency treatment to employers. Journal of Substance Abuse Treatment, 34(3): 311-319. DOI: 10.1016/j.jsat.2007.05.001 http://www.journalofsubstanceabusetreatment.com/article/S0740-5472%2807%2900142-0/abstractexit disclaimer small icon 

Authors: Neil Jordan, Grant Grissom, Gregory Alonzo, Laura Dietzen, Scott Sangsland


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