This report from the Open Society Institute discusses how addiction treatment reduces health care costs.   

From the Open Society Institute:

Addiction is a pervasive yet treatable chronic health condition.  Often it occurs alongside other chronic diseases.  If untreated, the addicted person's medical care becomes more costly due to secondary health conditions.  When treated, addiction leads to better health care outcomes. 

This paper demonstrates how addiction treatment will contribute to containing costs in reforming America's health system.  Studies show that addiction treatment significantly reduces emergency room, inpatient and total health care costs. 

While the overall cost savings have not been documented, there are clear signs of the potential for savings.  For example:

• One out of every 14 hospital stays - 2.3 million stays - was related to substance disorders in 2004, a federal study found.
• Total medical costs were reduced 26 percent among one group of patients that received addiction treatment.
• A group of at-risk alcohol users who received brief counseling recorded 20 percent fewer emergency department visits and 37 percent fewer days of hospitalization.

Full Report: http://www.soros.org/initiatives/treatmentgap/articles_publications/publications/paper1_20090714/paper1_20090714.pdf 

This study examines M/SU parity laws and their potential effect on out-of-pocket mental health treatment costs.  The study found modest yet important variation in out-of-pocket burden across states but note that prescription drugs account for nearly two-thirds of out-of-pocket spending and fall largely outside the scope of federal M/SU parity laws.  The authors conclude that M/SU parity laws will do little to reduce the observed burden or inter-state variation.  

Zuvekas, S. H., & Meyerhoefer, C. D. (2009). State variations in the out-of-pocket spending burden for outpatient mental health treatment. Health Affairs, 28(3), 713-22. DOI: 10.1377/hlthaff.28.3.713 http://content.healthaffairs.org/cgi/content/abstract/28/3/713 

Authors: Samuel H. Zuvekas, Chad D. Meyerhoefer.

This perspectives article considers the Mental Health Parity and Addiction Equity Act of 2008 and highlights the need for clear regulations and education regarding the costs of untreated M/SU conditions.  The authors suggest using the new law to reinforce the centrality of mental health care within the overall health care system and as a curricula piece of health care reform. 

Shern, D. L., K. K. Beronio, et al. (2009). After parity--what's next. Health Affairs, 28(3), 660-2. DOI: 10.1377/hlthaff.28.3.660 http://content.healthaffairs.org/cgi/content/abstract/28/3/660 

Authors: David L. Shern, Kirsten K. Beronio, Henry T. Harbin.

This white paper by Milliman Inc. analyzes the Mental Health Parity and Addiction Equity Act of 2008, focusing on effects of the parity legislation on individuals, health care plans, managed behavioral health care organizations (MHBOs) and other key stakeholders. 

Download the white paper from Milliman: http://www.milliman.com/expertise/healthcare/publications/rr/pdfs/preparing-parity-investing-mental-WP05-01-09.pdf 

This perspectives article examines implementation challenges surrounding the Mental Health Parity and Addiction Equity Act of 2008.  the author notes that unique features of M/SU care will pose challenges in aligning benefits with general health care.  

Dixon, K. (2009). Implementing mental health parity: the challenge for health plans. Health Affairs, 28(3), 663-5. DOI: 10.1377/hlthaff.28.3.663 http://content.healthaffairs.org/cgi/content/abstract/28/3/663 

Author: Keith Dixon

Using National Alcohol Surveys from 1995 through 2005, this study examines lifetime alcohol treatment utilization and perceived barriers among Latinos.  Predictors of higher utilization included: male gender, English language interview, older age, lower education, greater social pressures, greater legal consequences, greater dependence symptoms, and public insurance.  Analysis showed greater barriers among Spanish-speaking interviewees and showed under utilization among Latina women. 

Zemore, S. E., N. Mulia, et al. (2009). Gender, acculturation, and other barriers to alcohol treatment utilization among Latinos in three National Alcohol Surveys. J Subst Abuse Treat, 36(4), 446-56. http://www.ncbi.nlm.nih.gov/pubmed/19004599