Posted in Reroll
October 16th, 2019

The Opioid Crisis Has Cost The US More Than Half A Trillion Dollars In Four Years

Rerolled from a High Times Original Article


The opioid crisis cost the U.S. economy $631 billion from 2015 through last year — and it may keep getting more expensive, according to a study released Tuesday by the Society of Actuaries.

The biggest driver
of the cost over the four-year period is unrealized lifetime earnings of
those who died from the drugs, followed by health care costs.

While
more than 2,000 state and local governments have sued the drug industry
over the crisis, the report released Tuesday finds that governments
bear less than one-third of the financial costs. The rest of it affects
individuals and the private sector.

The federal government is tracking how many lives are lost to the opioid crisis (more than 400,000 Americans since 2000), but pinning down the financial cost is less certain.

A U.S. Centers for Disease Control and Prevention report
from found the cost for 2013 at $79 billion. That’s less than half the
cost that the latest report has found in more recent years. The crisis
also has deepened since 2013, with fentanyl and other strong synthetic
opioids contributing to a higher number of deaths. Overall,
opioid-related death numbers rose through 2017 before leveling off last
year at about 47,000.

A study published in 2017 by the White House
Council of Economic Advisers estimated a far higher cost — just over
$500 billion a year. The new study notes that the White House one used
much higher figures for the value of lives lost to opioids — attempting
to quantify their economic value rather than just future income.

The
actuaries’ report is intended partly to help the insurance industry
figure out how to factor opioid use disorder into policy pricing.

It
found that the cost of the opioid crisis this year is likely to be
between $171 billion and $214 billion. Even under the most optimistic
scenario, the cost would be higher than it was in 2017.

The study
was released just ahead of the first federal trial on the opioid crisis,
scheduled to start next week in Cleveland where a jury will hear claims
from Ohio’s Cuyahoga and Summit counties against six companies. The
counties claim the drug industry created a public nuisance and should
pay.

The report found that criminal justice and child-welfare system costs have been pushed up by the opioid epidemic.

Most
of the added health care costs for dealing with opioid addiction and
overdoses were borne by Medicaid, Medicare and other government
programs, according to the report. Still, the crisis rang up $18 billion
in commercial insurance costs last year. Lost productivity costs added
another $27 billion.

Businesses have begun noticing. Last week, a
small West Virginia home improvement company, Al Marino Inc., filed a
class-action lawsuit against several companies, claiming the opioid
crisis was a reason its health insurance costs were skyrocketing.

Still,
the biggest cost burden fell on families due to lost earnings of those
who died. Those mortality costs alone came to more than $72 billion last
year, the report said.

Members of a committee representing
unsecured creditors helping guide opioid maker Purdue Pharma’s
bankruptcy process have been calling for money in any settlement to go
toward to people affected by the crisis and not just governments.

The post The Opioid Crisis Has Cost The US More Than Half A Trillion Dollars In Four Years appeared first on High Times.


Rerolled from High Times