Understanding the Opioid Epidemic’s Economic Costs

(Summer 2018) The nation is in the midst of an opioid epidemic.  And let’s face it, its an expensive epidemic.  A recent report found that from 2001 to 2017 the opioid epidemic has cost one trillion dollars. That’s a one with 12 zeros – 1,000,000,000,000.  Or, put another way, converting the cost into seconds it equates to 32,000 years.

If you really start thinking about it, this number makes sense.  Between the lives lost to opioid use, the impact to family and friends, medical care, the justice system, businesses and a myriad of other areas, the opioid epidemic is far reaching.

But still, a trillion can be hard to wrap one’s head around, even if you think of it as 32,000 years.  And this is just one of the statistics out there about the economic impact of the opioid epidemic.  Below are a few more startling numbers, and some alternative ways to understand the numbers’ meanings.

• $6.6 billion- $8.8 billion [or 20 to 27 times the U.S. population]: In 2015, the estimated costs associated with treatment, the criminal justice system and productivity lost (immediate and lifetime) for the 92,000 to 170,000 Ohioans abusing or dependent upon opioids.
• 33% – over 50%: The estimated decline in the nation’s workforce participation that can be attributed to opioid abuse and dependency since 2007.
• $44 billion [roughly 473 times the distance between the sun and earth in miles]: The amount the U.S. economy loses each year from the loss of employees, aged 25 – 54, and their productivity because of the opioid epidemic.
• $4,410 [or just over 2 tons]: The average annual cost in missed work per employee with a pain medication use disorder. Employers without the disorder costs their employer $1,163. This is a difference of $3,250 annually.
• 68%: Injured Ohio workers who were prescribed narcotics in 2016. Furthermore, 31% of the prescription covered by the Ohio Bureau of Workers’ Compensation were for narcotics.
• $5.4 million [the equivalent of 62.5 days in seconds]: The average daily medical and work loss costs due to unintentional drug overdoses in Ohio.
• 4,050 [roughly the number of people 30 Boeing 747 airplanes can hold]: The number Ohio residents who died due to unintentional drug overdoses in 2016. This is an increase of 32.8% over 2015 which had 3,050 overdose deaths.
• $800,000 [almost the cost for 8 Tesla Roadsters]: Estimated per person cost in lost earnings and productivity from an overdose death, based on the average overdose victim age of 41.
• $2.6 billion [nine times more than then the highest paid athlete received in 2018]: The cost of services received by individuals with insurance from large employers for treating opioid addiction and overdose in 2016 (This includes both payments from insurers and out-of-pocket expenses.)
• $16,104 [roughly 16 iPhone Xs]: The average cost (both insurance and out-of-pocket) of inpatient treatment per individual with health insurance coverage from large employers. This is up from $5,809 in 2004.
• $4,693 [almost 939 boxes of Girl Scout cookies]: The average cost (both insurance and out-of-pocket) of outpatient treatment per individual with health coverage from a large employer.

All these numbers are just ways to put the cost of the opioid epidemic into perspective.  There are also a few numbers from the recent Drug Testing Index by Quest Diagnostic. This annual analysis of workplace drug tests demonstrated that we’re making progress.  It found that the rate of tests positive for prescription opiates dropped by 17%.

But the nation isn’t out of the woods yet.  The same study that identified the $1 trillion costs is projecting the opioid epidemic will cost another $500 billion by 2020.  But if the Quest Diagnostic data is any indication, it also means that the work done around education and legislation regarding prescription pain medication is working. (Side note: Many states are also attempting to recuperate some of the costs they’ve spent/will need to spend on services impacted by the epidemic by suing the companies who make and distribute opioid prescription medication.)

Don’t lose hope.  While it may not look like it, some of these figures are trending in a positive direction.  The number of people using opioids is decreasing and the amount of money being spent on treatment is going up. So fewer people are at risk of starting down the path to opioid addiction (not being prescribed opioids) and more people are getting treatment for their addiction. This can also signify that the steps taken by federal and state legislators are working.

And finally, these numbers can also show that the work businesses are doing to raise awareness and educate employees about safe medical practices around opioid medication isn’t falling on deaf ears.  The information is being passed along to friends and family and being used to protect employees’ children.  The positive role businesses can play in the opioid epidemic– education, drug testing and offering second changes – is tremendous.  Keep up the good work.

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