Feasibility of an alcoholism health insurance benefit

The present study examined the impact of alcoholism treatment upon the subsequent utilization of health care services. Information gathered on a sample of 2,362 alcoholic clients at time of admission and six months later, was utilized to compare the savings in medical care expenses with the costs of alcoholism treatment. For the first year following treatment, costs exceeded savings by an average of $263 per client (benefit-cost ratio = 0.63:1). However, if the savings were sustained, the benefits would exceed costs within two years of the treatment period. These findings support the notion that alcoholism treatment produces a reduction in medical costs and provides some economic justification for an alcoholism insurance benefit.