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The Costs of Substance Dependency

Fall 2013: Econ 339 Final Presentation. Ben Lessin. The Costs of Substance Dependency. Reference: Patrik Andlin-Sobocki (2004), Economic Evidence in Addiction: A Review, The European Journal of Health Economics , vol. 5, nr. 1, p. S5-S12. Total:_________. Substance Dependency.

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The Costs of Substance Dependency

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  1. Fall 2013: Econ 339 Final Presentation Ben Lessin The Costs of Substance Dependency Reference: PatrikAndlin-Sobocki (2004), Economic Evidence in Addiction: A Review, The European Journal of Health Economics, vol. 5, nr. 1, p. S5-S12 Total:_________

  2. Substance Dependency • Drug dependency affects much more than the health of the individual user • The amount of health economics research is limited, even though there are significant threats to health

  3. Goals of the Study • Review the economic data available on substance dependence in Europe • Identifying _____ of economic data on substance abuse in Europe • Information gaps • Research needs • Desirable refinements

  4. Life Expectancy with Substance Dependency

  5. Costs • Direct Costs: • health care costs • Inpatient care, IOP, Rehab (not for nicotine) • Incarceration • Indirect costs: • Source of the majority of costs in all drug dependencies • Includes costs due to mortality and/or crimes • high suicide risk of drug users • Losing a job

  6. Costs (€ per Year per User) • Total costs (euros, 2003) - Figures are currency-converted with PPPs (purchasing power parities) and time transformations • are made by national consumer price indexes. Source: Eurostat • Spainstotal cost/2003 costs – Based on estimates made by EMCDDA (European Monitoring Centre for • Drugs and Drug Addiction, www.emcdda.org)

  7. Studies • Lack of suitable studies: • Studies need to be done more frequently and for the recent years • Treatment practices change • new smoking cessation treatments • Drug use changes: • Supplies of illicit drugs change over time including new synthetic drugs • separation of nicotine from the carcinogens, i.e. e-cigarettes

  8. Conclusion • Substance dependency: • Significantly reduces length of life • Little attention in health economic research • More studies are needed • Treatment • Access and availability of effective treatment to counteract the prevalence of substance dependence is limited • cost of illness • Methods of attaining COI are inconsistent • comparisons of COIs are hampered by a lack of recent data

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