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.
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.
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.
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
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