Opioid Epidemic Cost $2.5 Trillion Over 4 Years, Says White House

Los Angeles, California -

The White House Council of Economic Advisers estimated that the opioid epidemic has cost the United States over $2.5 trillion over the past 4 years. The opioid crisis cost $696 billion in 2018 alone, according to the estimate, meaning the epidemic is seriously hurting the US economy.

The CEA last calculated the cost of the opioid epidemic in 2015. Back then they put the price at more than $500 billion. For this recent estimate, they used a similar methodology.

The CEA’s estimates are multiple times larger than what some other studies found. This is because the death toll from the crisis has grown in recent years. It is also due to the fact that the agency’s methodology is different compared to other studies because it tries to include the broader societal costs of premature death.

A 2016 study published in Medical Care estimated the total economic burden of prescription opioid overdose, misuse, and addiction at $78.5 billion for the year 2013. Meanwhile, a 2017 report published by Altarum estimated the cost of the opioid epidemic at $95 billion for 2016. A more recent report from the Society of Actuaries estimated the total economic burden from 2015 through 2018 was at least 631 billion.

The CEA has argued that these other estimates “greatly understate [the cost] by undervaluing the most important component of the loss—fatalities resulting from overdoses.”

The agency also said that other estimates look at a narrow set of costs like health care expenses and lost potential earnings from work. Instead, it should be the full value of all activities people could contribute to if they didn’t die prematurely, according to the CEA.

Corey Rhyan, a health care research analyst at Altarum, said that neither estimates are necessarily more accurate than the other because each report is trying to answer different questions.

“Our [Altarum] report is looking at the direct estimate of the return you would see in economic benefits if you could remediate this epidemic—the potential economic benefits, the true dollar values that you would see over someone’s lifetime as a result of someone’s increased earnings,” Rhyan said. “What the White House produced is the total societal welfare loss associated with the opioid epidemic, which includes the implicit value of life because they’re trying to put a value on [the fact] we care more about people than just what their economic gains are going to be throughout their lifetimes.”

What both estimates reveal is that the cost of the opioid epidemic is very high, ranging from the tens of billions of dollars to hundreds of billions on the high end. This means even a large investment to address the opioid crisis could still prevent much more in costs down the line.

The Trump administration and Congress have increased funding for the opioid crisis by the billions of dollars here and there. However, it falls short of the tens of billions that experts say is necessary to adequately boost addiction treatment and harm reduction efforts.

More than 700,000 people died of drug overdoses in 2017, which is a record number. Around two-thirds of these deaths were linked to opioids.

If someone in the family is struggling with drug or alcohol addiction, it is important to seek help. A combination of medical detox and behavioral therapy can go a long way in the fight against drug abuse. But because every individual is affected by addiction differently, a comprehensive program tailored to their specific needs is necessary. Look for a nearby addiction treatment facility today and find out how drug treatment programs work.