Substance abuse is associated with morbidity, premature mortality, criminal activity, increased medical care and other consequences that result in economic costs to society. This study estimated the economic loss associated with substance abuse in Washington State for two years, 1990 and 1996. Total estimated costs in 1990 were $1.81 billion, with premature mortality and morbidity accounting for most of the estimated economic loss. Costs increased by 39% to $2.39 billion from 1990 to 1996, but 30% of this was due to inflation and population growth. Alcohol accounted for approximately 55% of total costs in 1990. The proportion of costs associated with other drugs increased between 1990 and 1996, principally because of increased crime costs resulting from incarceration of drug offenders. For every $1 Washington State raised in the form of specially designated alcohol taxes, $12 were “spent” directly or indirectly as a consequence of substance abuse. This type of economic information is valuable to assist policymakers and administrators in resource allocation, planning and advocating for treatment and prevention. In Washington State, this information helped secure an increase in the mandated health insurance coverage for substance abuse treatment that had remained unchanged for over 12 years.
Learning Objectives: By the end of the session, participants will be able to: 1) describe the methodology used to estimate economic costs associated with substance abuse, and 2) discuss the magnitude and nature of these costs related to morbidity, mortality, crime, medical care and treatment
Keywords: Economic Analysis, Substance Abuse
Presenting author's disclosure statement:
Organization/institution whose products or services will be discussed: None
I do not have any significant financial interest/arrangement or affiliation with any organization/institution whose products or services are being discussed in this session.