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Smoking Cost of Treatment in the Us

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Submitted By maulikpanchal23
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Business Issue: In the U.S. there are lot of underage drinkers/smokers and those who do drugs. The cost for treatment for substance abuse and alcoholism is approximately $1B. What could be done to reduce these costs for the insurance company?

1. Figure out what is the breakdown of the costs incurred for these treatments. At which level do we spend the most money? Where can we spend the least? Depending on the breakdown, we can address each area individually.

For e.g., a. Inpatient Acute Detoxification, b. Inpatient Acute Rehabilitation, c. Substance Abuse Residential Treatment Detoxification, d. Substance Abuse Residential Treatment, e. Substance Abuse Partial Hospitalization Program, f. Substance Abuse Intensive Structured Outpatient Program and g. Outpatient Treatment.

This way, by building programs of interventions at various levels of, we can make sure the patient in treated at the earliest. The overall cost of treatment can thus be reduced.

2. Plan better rehabilitation programs. Estimate the cost of quarterly or semi-annually conducting drug tests for addicts, to make sure they follow the regimen and are totally off the drugs or alcohol. The amount of money that can be saved for treating those who have past records of substance abuse.

3. Incentivizing those who do not have any alcohol related ailments in the form of lesser progressive premiums.

4. Increase premiums if a member’s health is compromised due to worsening of co-morbidities on the account of alcoholism.

5. Figure out feasibility of setting up our own diagnostic labs OR contracting with any of such labs. We should calculate if the overall cost reduction by intervening early (with such diagnostic labs) is profitable considering the cost of setting up own diagnostic labs.

6. Make sure every employer groups must have a

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