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News 19

Substance Abuse Treatment Parity Legislation Introduced

On March 22, 2001, Senator Paul Wellstone (D-MN) and Congressman Jim Ramstad, (R-MN) were recently joined by Minority Leader Tom Daschle (D-SD) and a biparisan group of members in both chambers, to take important first steps to ending the outdated U.S. drug policies of the 1990's by introducing legislation that would cover addiction treatment benefits in the same manner as all other medical and surgical conditions currently covered under private health plans. 

To assist Affiliates, community groups and indvidual citizens in supporting the substance abuse parity legislation, National Council on Alcoholism and Drug Dependence (NCADD) has developed the "Fairness in Treatment: Parity Treatment
Advocacy Kit." The Kit includes: 

* New tool that allows users to enter their zip code in a search box, and the user's Senators and Representative are automatically looked-up. A sample letter is provided as well as a blank page for you to compose your own letter, if you prefer, or use the provided sample letters. 

* Information on adding the Congressional members search box to your 
website is also in the Kit. 

* Sample News Release 

* Talking points: "Key Messages for the Media" 

* Sample Letters to Senators and Representatives 

* Parity Fact Sheet: "FYI: Fairness in Treatment" 

* List of Online Treatment Parity Resources. 

The Kit is available online at http://www.ncadd.org/programs/advocacy/paritykit.html. 

Fairness in Recovery

Fact Sheet

 The Need for Treatment

bulletUntreated addiction costs America $400 billion per year (Source: Substance Abuse: The Nation’s Number One Health Problem, Brandeis University, Schneider Institute for Health Policy, 2001)

bullet23 million Americans suffer from substance abuse addiction (Source: Substance Abuse: The Nation’s Number One Health Problem, Brandeis University, Schneider Institute for Health Policy, 2001)  

bulletUntreated addiction is more expensive than 3 of the nation’s top 10 killers: 6 times more expensive than America’s number one killer: heart disease ($133.2 billion/year), 6 times more than diabetes ($130 billion/year), 4 times more than cancer ($96.1billion/year) (Source: Substance Abuse: The Nation’s Number One Health Problem, Brandeis University, Schneider Institute for Health Policy, 2001)

bulletDrug related deaths have almost doubled since 1990--approximately one in four deaths each year is attributable to substance abuse. (Source: Substance Abuse: The Nation’s Number One Health Problem, Brandeis University, Schneider Institute for Health Policy, 2001)  

bulletMore than half of all adults have a family history of alcoholism or problem drinking. (Source: Position Paper on Drug Policy, Physician Leadership on National Drug Policy (PLNDP), Brown University Center for Alcohol and Addiction Studies, 2000)  

bulletMore than 9 million children live with a parent dependent on alcohol and/or illicit drugs. (Source: Position Paper on Drug Policy, Physician Leadership on National Drug Policy (PLNDP), Brown University Center for Alcohol and Addiction Studies, 2000)  

bulletHeavy drinking contributes to illness in each of the top three causes of death: heart disease, cancer and stroke. (Source: Position Paper on Drug Policy, Physician Leadership on National Drug Policy (PLNDP), Brown University Center for Alcohol and Addiction Studies, 2000)

Social and Medical Barriers to Treatment

bullet

82% of doctors admit that MD’s avoid addressing alcoholism in their patients. (Source: The Road to Recovery: A Landmark National Study on Public Perceptions of Alcoholism and Barriers to Treatment.  Peter D. Hart Research Associates, Inc. 1998.)  

bulletFamilies need and want help: 72% of families whose doctor has not intervened to arrest addiction say they would want the doctor to do so. (Source: The Road to Recovery: A Landmark National Study on Public Perceptions of Alcoholism and Barriers to Treatment.  Peter D. Hart Research Associates, Inc. 1998.)  

bulletA 58% majority of employers acknowledged that managers avoid addressing alcoholism in their employees. (Source: The Road to Recovery: A Landmark National Study on Public Perceptions of Alcoholism and Barriers to Treatment.  Peter D. Hart Research Associates, Inc. 1998.)  

bullet58% of clergy acknowledge that they avoid addressing alcoholism among the individuals and families they counsel. (Source: The Road to Recovery: A Landmark National Study on Public Perceptions of Alcoholism and Barriers to Treatment.  Peter D. Hart Research Associates, Inc. 1998.)

 Treatment Works:

bulletTreatment of addiction is as successful as treatment of other chronic diseases, diabetes, hypertension and asthma (Source: National Institute on Drug Abuse, Principles of Drug Addiction Treatment, 1999)

bulletDrug treatment reduces drug use by 40-60%. (Source: National Institute on Drug Abuse, Principles of Drug Addiction Treatment, 1999)  

bulletOne year of methadone treatment costs $4700 per patient—one year of imprisonment is $18,400. (Source: National Institute on Drug Abuse, Principles of Drug Addiction Treatment, 1999)  

bulletFor every $1 spent on treatment yields a return of up to $7 in a reduction of drug related crime and criminal justice costs.  (Source: National Institute on Drug Abuse, Principles of Drug Addiction Treatment, 1999)  

bulletWhen adding savings related to health care, the savings exceed costs by a ratio of 12:1. (Source: National Institute on Drug Abuse, Principles of Drug Addiction Treatment, 1999)  

bulletNo differences in success of treatment between genders, age or ethnicity. (Source: National Institute on Drug Abuse, Principles of Drug Addiction Treatment, 1999)  

bulletThe majority of employee managers (83%) believe its better for a company’s bottom-line to help employees recover from addiction than it is to terminate them for alcohol-related incidents. (Source: The Road to Recovery: A Landmark National Study on Public Perceptions of Alcoholism and Barriers to Treatment.  Peter D. Hart Research Associates, Inc. 1998.)  

bulletTreatment saves money: A Chevron Corporation analysis indicated that $10 is saved for every $1 spent on employee rehabilitation (figure does not include savings for reduction in workplace accidents as a result of employee rehabilitation)  (Source:  Chevron Corporation, Testimony on Workplace Substance-Abuse Prevention Programs before the Subcommittee on National Security, International Affairs and Criminal Justice of the Committee on Government Reform and Oversight, U.S. House of Representatives, June 1996).  

bulletTreatment Works: According to American Airlines, 75% to 80% of employees who received alcohol and other drug treatment had remained abstinent from substances through the entirety of the one-year monitoring activities.  (Source:  John Saylor, Manager of Employee Assistance Programs for AMR Corporation and for American Airlines, AMR’s largest subsidiary, July 28, 1998 testimony before the Senate Labor and Human Resources Committee.)  

bulletThe largest study to date on the benefits of substance abuse treatment was conducted by the University of Chicago’s National Opinion Research Center and Lewin-VHI of Fairfax, Virginia for the State of California Health and Welfare Agency’s Department of Drug and Alcohol Programs in 1994.
bulletState-wide emergency room admissions dropped by 1/3 after treatment
bulletThe initial cost for treating 150,000 people totaled $200M, the cost savings totaled $1.5 billion.  Each day of treatment paid for itself primarily through savings incurred by avoidance of crime—benefits to California taxpayers equaled or exceeded the costs.
bulletCrime declined by two-thirds from before treatment to after treatment.  The greater the length of time spent in treatment, the greater the percent reduction in criminal activity.
bulletTreatment for addiction to major stimulant drugs (crack cocaine, powdered cocaine, and methamphetamine), proved equally effective to treatment for alcohol problems, and somewhat more effective than treatment for heroin problems.
bulletNo differences in success of treatment between genders, age or ethnicity.
Costs are Minimal for Parity in Health Plans:
bullet

  Providing parity for drug and alcohol treatment services does NOT increase health insurance premiums significantly: The most current governmental and private actuarial studies indicate that parity in health insurance plans costs a maximum of $1 per month of all studies conducted:

bullet

Substance abuse treatment services can be made available to employees for $5.11 a year, or 43¢ per month.  (Source: The Journal of Behavioral Health Services & Research, May 1999.  How Expensive Are Unlimited Substance Abuse Benefits Under Managed Care? By Roland Sturm, Ph.D.)

bullet

According to the actuarial firm of Milliman and Robertson, substance abuse parity will increase premiums by less than one percent or less than $1 per family member per month.  (Source: Milliman & Robertson, Inc., 1997.  Premium Estimates for Substance Abuse Parity Provisions for Commercial Health Insurance Products.)

bullet

A Dept. Health and Human Services (Substance Abuse and Mental Health Administration) study found that “if parity was limited to substance abuse, premiums would rise by only 0.2 percent.”  Substance Abuse and Mental Health Services Administration (SAMHSA) March 1998 study examined expansion of mental health and substance abuse insurance benefits found that “based on an updated actuarial model, full parity for mental health and substance abuse services is estimated to increase premiums by 3.6 percent, on average.  Mental health accounts for most of this increase.”  (Source:  SAMHSA, March 1998)

bullet5 states with parity in their health plans (California, Ohio, Oregon, Minnesota and Washington) found that costs associated with substance abuse benefits tend to have little impact on premiums or the overall spending of insurance companies and that the initial costs are offset by the resultant social benefits of treatment  (The Center for Substance Abuse Treatment’s Office of Managed Care and the Center for Mental Health Services)

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