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The High Cost of Excessive Alcohol Consumption in New Hampshire

Excessive alcohol consumption in New Hampshire costs over $1.15 billion annually, impacting productivity, earnings, healthcare charges, and criminal justice costs. This report explores the various ways excessive alcohol use affects the state's economy and provides potential policy recommendations to address the issue.

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The High Cost of Excessive Alcohol Consumption in New Hampshire

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  1. The High Cost of Excessive Alcohol Consumption in New Hampshire

  2. Excessive Alcohol Consumption Costs NH $1.15 Billion Annually

  3. Lost Productivity in the NH Economy From Excessive Alcohol Consumption Costs NH Over $750 Million Annually. It Occurs in Several Ways, Including: • Excessive alcohol consumption reduces the number of individuals in NH’s workforce. • Excessive alcohol consumption reduces the productivity and earnings of alcohol dependent workers who are in NH’s labor force. • Excessive alcohol consumption increases absenteeism, workplace accidents and injuries.

  4. Alcohol Dependency and Abuse Reduces NH’s Labor Force by an Estimated 9,292 Workers or 1.3% of the Total Workforce – Lowering Earnings in the State by $403 Million

  5. Mean Earnings of NH’s 66,000 Alcohol-Dependent Male Workers are Significantly Lower Than Workers Without an Alcohol Dependency – Collectively Lowering Earnings in the State by Over $325 Million

  6. Excessive Alcohol Consumption Adds Over $180 Million to Annual Medical Expenditures in NH • Excessive alcohol use is directly responsible for many medical conditions requiring hospitalization and contributes to many others. • Alcohol increases outpatient/ambulatory care charges. • Contributes to increased prescription drug use and costs. • Results in treatment costs for excessive alcohol use. • Excessive alcohol use adds to insurance administration costs. • And alcohol contributes to nursing home utilization, care, and costs.

  7. Alcohol Abuse Increases Health Care Charges in New Hampshire by $207 Million and Payments by $154 Million. Administering Insurance Claims Adds Another $17.6 Million

  8. Criminal Justice Costs (Not Including Costs to Victims) are the Largest Direct Cost to Governments in NH of Excessive Alcohol Use

  9. Who in NH Bears the Cost of Excessive Alcohol Consumption?

  10. The Private Sector and the NH Economy Incur the Largest Costs of Excessive Alcohol Use Via Reduced Productivity and Earnings, But NH Governments Bear Over $250 Million in Annual Costs * Other costs include motor vehicle crashes and lost tax revenues

  11. We Have Modeled the Fiscal Benefits (Returns) to State and Local Government of Increasing Treatment Rates. There are a Number of Policies That Could Produce the Fiscal Benefits Documented in Our Report. Currently ~ 4% Receive Treatment % “In Need” Receiving Treatment

  12. Some Possible Policy Prescriptions Expand Prevention and Early Intervention Efforts Increase Treatment Rates Restore/Increase State Support for Treatment Services Allocate % of Liquor Commission “Profits” to Treatment Programs Incorporate Alcohol Treatment into Medicaid Expansion Encourage Alcohol Treatment Benefits in Private Health Plans Recover Alcohol-Attributable Public Costs Raise Alcoholic Beverage Taxes Consider Modest per-Drink Alcohol Costs Recovery Charge

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