This estimate includes addiction treatment and prevention costs, as well as costs associated with related illnesses, reduced job productivity or lost earnings, and other costs to society such as crime and social welfare programs. According to this same study, private health and life insurance companies bear only 3.2 percent of the costs of drug abuse and 10.2 percent of the costs of alcohol abuse. Insurance companies and employers fear rising costs. But the truth is, the costs are very low, and must be considered against the costs of the failure to treat. We must also recognize that we as a country already pay for the costs of this disease in so many other ways.
Business pays already too, for the failure to provide treatment.
Yet, we know from a landmark study of cocaine markets by the RAND Corporation that, dollar for dollar, providing treatment to cocaine users is 10 times more effective than drug interdiction schemes and 23 times more cost effective than eradicating coca at its source. Until we devote adequate resources on drug treatment, rehabilitation and prevention, our country will continue to consume billions of dollars worth of drugs. As a result of these barriers, many individuals do not get treatment, and the consequences can be very tragic. Parity for treatment of drug and alcohol addiction and mental illness is a growing movement. In addition to federal parity legislation, more than half of our states have passed some form of mental health or substance abuse treatment parity.