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How Much Has Heroin Addiction Cost the Economy?

How Much Has Heroin Addiction Cost the Economy?

When we talk about the opioid epidemic in America, we talk a lot about the cost of human life. Over the last few years, the outbreak of heroin use has continued to rise. This kind of inflation has come at the price of tens of thousands of lives each year lost. 2017 is already considered the worst year for overdose deaths in American history. There is no way we could possibly put a value on the lives of those lost. We can’t give a consultation on the damage their deaths have done to families and communities across the country. But looking at how heroin and opioids have hurt the economy gives us another means to measure the true cost of the opioid crisis.

We already know we’ve gone well over budget with the failed War on Drugs. While dollar amounts will never compare to the devastation of losing loved ones, maybe it can add another layer of perspective to the issue. So, how has heroin addiction hurt the economy?

How Heroin Hurts the Economy

It is actually complicated trying to identify exactly how heroin addiction hurts the economy. There are a lot of unique elements to take into account. For example, many have suspected that even the incredibly high rates of overdose death recorded may actually be under-reported and misclassified.

One study from a few years ago highlights several big-picture ways heroin addiction hurts our economy. This study assesses three “invisible costs” of heroin addiction most people don’t recognize.

  1. Medical Costs

We will start with the one that seems pretty obvious. Although, the cumulative effect of heroin addiction on the medical treatment infrastructure is more complex than you might expect.

Utilizing data from the mid-90s, the study estimates that heroin addiction treatment amounted to $5 billion dollars. That was so long ago, it is incredibly easy to predict that tab has shot up drastically in the last decade and a half as heroin use has consistently skyrocketed.

Another thing most people don’t realize is that the types of addiction treatment people have access to will depend on what their insurance will pay for. Because insurance companies are often more interested in keeping costs down than effectively treating addiction, it is safe to bet that a lot of that humble estimation of $5 billion was probably wasted on lackluster facilities and regimens that did not offer innovative and effective treatment. Part of curbing these costs is about support programs that do offer quality care, including comprehensive residential treatment.

According to health research and consulting institute Altarum, healthcare costs alone related to the opioid crisis reached $217.5 billion between 2001 and 2017.

  1. Loss of Productivity

Putting a value on something you don’t have is pretty difficult to do. It is hard to adequately propose a price tag for an amount of productivity you can’t measure, but in order to truly grasp how heroin addiction hurts the economy, you cannot ignore the loss of productivity.

One estimate from researches says that the economy missed out on $11.5 billion because of people either:

  • Unable to work
  • Diverting labor towards addressing heroin addiction

But this is just from a guess of labor costs. It is impossible to quantify all the potential that never becomes realized due to heroin and opioid overdose death. Many people who use drugs and actually do recover end up contributing so much to their communities. So one can hardly imagine what it would mean if the over 72,000 people who died in 2017 from drug overdose were still alive today and what difference they would be able to make.

  1. Criminal Activity

On one hand, the United States criminal justice system does provide jobs to millions of Americans. However, the public typically funds these systems. Therefore, the taxpayer is the one paying to put people with heroin addiction through the criminal justice system.

Researchers estimate that criminal activity, adjudication, and incarceration in connection to heroin costs the economy approximately $5.2 billion. Luckily, there is a new trend across the country of police helping addicts get treatment through PAARI programs.

It All Adds Up

When we add up the estimates from the three categories the bill comes out to a staggering $21.7 billion dollars. But things have continued to get worse since that study was published. Another analysis from earlier this year estimates that the opioid crisis cost the country $115 billion in 2017. The organization also claims the economic toll of the opioid crisis between 2001 and 2017 is over $1 trillion.

The economic fallout of heroin and opioids is on track to be over $500 billion from 2018 to 2020!

According to Altarum, the greatest impact on the economy as a result of heroin addiction is the loss of earnings and productivity. Based on the average age of overdose victims, around 41 years old, that cost is estimated at about $800,000 per person.

When we look at all those billions and trillions, it is easy to see how heroin addiction hurts the economy. It all adds up to a truly tragic reality we face as a nation. However, the opportunity to put some of this money toward other endeavors should be a huge financial incentive that our leaders to make some much-needed changes. It’s just one more reason we should be taking meaningful actions to prevent heroin addiction and provide safe and effective heroin detox and holistic treatment options.

In the end, no amount of money can replace those who lose their lives to addiction. We can look at how these tragedies translate to transactions, but nothing is more valuable than helping those who suffer find the path toward a better future. True happiness and lasting recovery are absolutely priceless.

Palm Healthcare Company believes in providing innovative and effective addiction treatment for anyone battling with addiction. Our professional team of certified specialists offers comprehensive care, and our missing is to heal each individual’s mind, body, and spirit. If you or someone you love is struggling with substance abuse or addiction, please call toll-free now. We want to help.

CALL NOW 1-888-922-5398

Dave Aronberg Talks How to Fight Fraud in Treatment Industry

Dave Aronberg Talks How to Fight Fraud in Treatment Industry

8 months ago, Florida was home to 953 licensed drug treatment centers, and 207 were in Palm Beach County. As of April 1, there are now 185 in Palm Beach, with 771 in the whole state. This decrease is due to the crackdown on fraud by Palm Beach State Attorney’s Office, which has led to 45 arrests in the last year and a half. So far, those arrests have led to 16 convictions. For State Attorney Dave Aronberg there is no sign of slowing down.

Recently, Dave Aronberg spoke with Opioid Watch to talk about the work his office has been doing to try and strengthen the addiction treatment industry. Chief Assistant State Attorney Alan Johnson also sat down to talk about how Palm Beach County is fighting to protect those who are coming to Florida for help. Johnson heads the office’s Sober Homes Task Force.

Dave Aronberg VS Purdue Pharma

 According to Aronberg, he got involved with opioid-related issues back in 2001, when he was an assistant attorney general. Aronberg says he was asked by his boss, Bob Butterworth, to investigate Purdue Pharma. This Big Pharma giant is the producer of OxyContin. This powerful prescription opioid has been credited with making a heavy contribution to the opioid crisis. Dave Aronberg was to examine the marketing practices of Purdue Pharma, and is quoted in the interview transcript stating:

“I believe we were one of the first in the country.”

Of course, now Purdue Pharma is one of many big name pharmaceutical companies being accused in lawsuits across America. In fact, Delray Beach, Florida recently filed its own case against the company.

When asked about what he found, Aronberg said that Purdue was marketing the product like it was Advil. Purdue has been repeatedly accused of pushing this product as if it was far less dangerous than it actually was. In 2002, Dave Aronberg was elected to state senate, and shortly afterward the case against Purdue was settled. In the edited interview transcript, Aronberg is quoted:

“Purdue also offered $2 million to the state to establish its first prescription drug monitoring program. I worked in the state senate to get the PDMP enacted into law. But some conservatives refused to go along. They thought it was Big Government. So Purdue’s $2 million went away, because the offer expired. We didn’t get the PDMP till 2011. By then the carnage was horrific.”

Furthermore, Opioid Watch notes that a Purdue spokesperson confirmed that the state failed to implement a PDMP by July 1, 2004, which was the expiration of the companies offer.

Dave Aronberg Goes to Congress

In December of 2017, Aronberg went in front of Congress to testify concerning fraud and abuse in the addiction treatment industry. In this meeting, they discussed various issues with shady facility operators in Florida and made suggestions on how the law could step in to change it and protect patients. The interview transcript quotes Aronberg:

“In recent years, we’ve had an influx of unscrupulous operators who enrich themselves by exploiting those in recovery. As a consequence, we’re attracting thousands of young people from throughout the country into fraudulent rehab centers. (We’re talking about some, not all. There are good rehab centers, too.)”

Again, Aronberg found himself at battle with shady marketing practices. While investigating the treatment industry, Aronberg’s office discovered illegal operations that not only manipulated insurance providers but put patients at extreme risk.

From patient brokering, where illicit actors would sell patients with insurance to the highest bidders, to illegal kickback schemes being run by sober homes to outpatient treatment programs. Chief Assistant State Attorney Alan Johnson added information about the exploitation of urine analysis costs, and even some programs that began billing insurers for allergy and DNA testing. Aronberg states:

“We have a doctor who billed $7 million in nine months for allergy tests.”

Needless to say, the task force and state officials had their work cut out for them.

The ACA, ADA, and FHA

When talking about the many scams being run by various illegitimate businesses, the conversation came back to insurance and how these cons run. Here Dave Aronberg talks about his beliefs on how the law should step in and help restructure the current system.

“Number one: Change the Affordable Care Act’s fee reimbursement model to an outcome-based reimbursement model. Where the good providers are rewarded and the bad ones are paid less. Right now, the opposite occurs, so the more times you fail, the more money you get. There’s an incentive for more services and for more relapse. That shouldn’t be.”

After talking about the issues with the ACA, he talked about the ADA and FHA.

“The second change we need is this: the Americans with Disabilities Act and Federal Housing Act have been misused and exploited by bad actors who own flophouses.”

He went on to say,

  “Local governments are largely prohibited from overseeing the sober home industry. If they want to require mandatory inspections, certifications, and registrations, they’re likely prohibited under federal law.”

In essence, Aronberg believes the law should allow local governments to create their own guidelines for health, safety and the general welfare of the patients. None of these demands seems outlandish, and with reasonable regulation, the reputable and effective providers in this industry can continue to best serve the South Florida recovery community.

Aronberg also points out that the problem is not only in Florida. Recently, he went to Orange County, California to meet with officials dealing with the same situation. Next for Dave Aronberg is leading the national task force of 34 prosecutors in 30 states. Their goal is to produce a working paper for setting best practices for prosecutors all over America concerning these issues. The task force also intends to make suggestions for changes to federal and state laws.

What might be most surprising though is the mention of harm reduction strategies?

“It’s about prevention, drug treatment, and innovative strategies. I think it will be powerful because it’s going to be prosecutors talking about needle exchanges and disposal and safe injection sites. People assume prosecutors are going to be focusing only on mandatory minimums and longer sentences. That’s not what this is about. I think it’s going to surprise people.”

While needle exchanges and safe injection sites have been proposed in numerous states, it is not the most popular idea. San Francisco is actually on track to open the first safe injection site in America, with Philadelphia not far behind, and Seattle and Baltimore in the conversation as well.

With Aronberg and the task force working to make a difference, hopefully, we will see the right change soon. We hope it will make the recovery community stronger as a whole. Reputable and respected providers are also doing their part to refine their practices while implementing innovative and effective resources to ensure that those who with drug or alcohol addiction always have a safe place in Palm Beach County to get the help they need. With the opioid crisis ongoing, having real resources for opioid treatment is still an essential part of overcoming the problem.

Palm Healthcare Company is a leader in holistic addiction treatment with over 20 years of helping people from all over the country heal mind, body and spirit. Providing safe and comprehensive care should always be a focus in the effort to overcome the drug problem, and preservation of life should always be a priority. If you or someone you love is struggling, please call toll-free now.

CALL NOW 1-888-922-5398

Opioid Commission Demands Insurance Companies Cover Treatment

Opioid Commission Demands Insurance Companies Cover Treatment

If that headline seems kind of confusing, don’t worry, it should. Technically insurance companies are already required by law to provide the same coverage for substance abuse and mental health that they do for other health conditions… and therein lies the issue.

Back in August the White House Opioid Commission, established by President Trump and led by New Jersey Governor Chris Christie, made several recommendations to the current administration about how to address the current drug crisis as it damages communities across the country. One of those recommendations was to declare a national emergency, while others had to do with options for prevention and education.

In the aftermath of ex-DEA agent Joe Rannazzisi’s eye-opening interview exposing the shady connections between Congress and Big Pharma companies, many have been looking closely at how government officials and multi-billion dollar empires helped create the opioid epidemic. Now the White House’s Opioid Commission is putting a focus on how health insurance companies and the flaws in their policies have contributed to the intensifying addiction crisis.

So with the opioid commission saying they will call-out insurers and make demands on coverage for addiction treatment, will more people have access to help?

Restricted Addiction Treatment

One of the biggest issues the opioid commission seems to have with insurance companies is that frequently their policies only cover one type of addiction treatment and not others. It seems insurance companies are convinced that with a complex and extremely personal issue like substance use disorder or mental health conditions, there is a one-size-fits-all answer. Sadly, most advocates can tell you this isn’t the case.

Something else especially frustrating is that laws already exist to prevent insurers from treating addiction treatment different than any other health issue. Chris Christie himself said,

“Why are we still not seeing addiction services covered, and mental health services covered as broadly as every other type of disease?”

“And what do we need to do to make sure that the law is enforced and followed?”

The Mental Health Parity and Addiction Equity Act of 2008 requires health insurers to treat mental health and substance abuse disorders the same as any other disease. It means they should provide health care coverage for these conditions without additional limits, co-pays or deductibles. If companies add on additional requirements, it creates even more barriers between the suffering individual and treatment. Sadly, not every insurance company thinks it has to play by the rules.

A task force convened by President Barack Obama last year reported that numerous insurance companies still place a number of limits on addiction coverage, like more strict pre-authorization requirements. The insurance companies claim that their policies are only part of a complex problem, insisting that the issue also has to do with shortages of doctors and poor medical training from healthcare providers in the field of addiction treatment.

However, the simple fact that insurance companies are still trying to push back against supporting addiction treatment has the opioid commission ready to address the inconsistencies that are making it even harder for people who need help to get the help they deserve.

Holding Insurance Companies Accountable

The opioid commission is not holding back when it comes to trying to make insurance companies contribute to solutions since they helped contribute to the problem. The New Jersey Governor warned health insurance companies to be prepared for a final report that will “place new demands” on health insurance policies.

Christie and the opioid commission seem to be playing offense, saying Big Pharma drug companies and health insurers profit while allowing an epidemic of addiction to continue, but these new demands will hopefully change all that. Christie added,

“I’m a capitalist. I want everybody to make profits. I think it’s great. But we can’t any longer go about addressing this problem this way,”

“I hope you’re prepared to accept the challenge, because we know if it hasn’t gotten into your own house yet, it could, and then all the sudden your perspective on this problem could become markedly different.”

Not only is there more pressure on insurance companies when it comes to treatment options in their policies, but with how they handle medications in the first place.

Health insurance providers are also under a greater deal of scrutiny for policies that sometimes favor powerful and addictive painkillers over less addictive, and more expensive, variations. So not only are they limiting the options when it comes to getting treatment for substance abuse, but they are limiting coverage of medications to more addictive drugs to save money.

Insurance providers did show up to testify at the commission to help create a more comprehensive view of the issue. Involved were executives from some of the nation’s largest insurance companies:

  • Aetna
  • Anthem
  • Blue Cross Blue Shield
  • Cigna
  • Harvard Pilgrim Health Care
  • Kaiser Permanente
  • UnitedHealth Group
  • UPMC Health Plan

Representative Elijah Cummings, the ranking member of the House Oversight Committee, also has questions for many of those same companies. Some of these inquiries stem from a report by The New York Times last month stating insurance companies “erected more hurdles to approving addiction treatments than for the addictive substances themselves.”

Cummings wrote letters to seven of the companies which state,

“This is not a hypothetical problem. The over-prescription of opioids leads to addiction and death.”

The White House’s opioid commission has also spoken with leaders in the pharmaceutical industry. All this shows that the opioid commission is not only worried about exploring our options for fixing the issue but also in examining all the elements that helped cause the opioid epidemic in America. Christie says the final report to President Trump will include sweeping recommendations but will also be “extraordinarily instructive in terms of how we got here, which is an important thing for this commission to acknowledge.”

The commission will hold its last meeting November 1st before delivering its final report to the President. Only time will tell what demands this report plans to place on insurance companies to provide more coverage for addiction treatment services.

Will Insurance Companies Change?

The big question becomes how will this impact the services offered by insurance companies. Will the opioid commission’s suggestions help shape new policies, or will some insurance companies continue to ignore the parity laws put in place to make sure they do not discriminate against the treatment of substance abuse?

Will these changes allow for the coverage of different innovative and holistic treatment options, or will the change only support programs that depend on maintenance drugs like methadone or Suboxone?

Hopefully, the new demands being put on insurance companies will help to support mental health and substance abuse parity. When it comes to addressing addiction in America, we need every resource we can get in order to move forward with overcoming the opioid epidemic. With more officials taking a closer look at every aspect of the issue, perhaps we can get a more effective strategy for addressing the problem.

With so many people struggling with opioids and other drugs across the country, comprehensive and effective treatment is essential to making any real progress. For decades Palm Healthcare Company facilities have been providing holistic addiction treatment options that help create lasting change. If you or someone you love is struggling with substance abuse or addiction, please call toll free now.

 CALL NOW 1-888-922-5398

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