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Axios
22-05-2025
- Health
- Axios
Exclusive: Opioid crisis cost Georgia $81 billion last year
Opioid abuse is as much an economic problem as a public health one, according to a comprehensive analysis provided first to Axios that shows Georgia spends more than $730,000 on each such case. Why it matters: The cost burden falls unevenly across the country, with states in a belt stretching through Appalachia to New England typically having bigger caseloads and a higher cost per case. Context: Opioid use disorder — defined as frequent opioid use and unsuccessful efforts to quit — is estimated to affect more than 6 million people in the United States, costing the nation an estimated $4 trillion last year, per health care consulting firm Avalere Health. The cumulative economic burden on patients, including years of life lost and reduced quality of life, exceeded $3 trillion in 2024, Avalere estimated. Context: At $736,361, Georgia's average cost per case is slightly higher than the national average, per the analysis from Avalere, which used 2017 figures to project 2024 net costs. Zoom out: In Georgia, patients bore more than $62.1 billion in costs from reduced quality of life and statistical loss of life. Businesses absorbed more than $9.6 billion in costs from lost productivity and health insurance costs. It cost the federal government about $2.3 billion in Medicare and other federal insurance costs, lost taxes and criminal justice expenses. State of play: Georgia received $636 million in a settlement with major U.S. opioid distributors and a manufacturer.
Axios
21-05-2025
- Health
- Axios
The opioid crisis' economic impact in Michigan
Opioid misuse is as much an economic problem as a public health one, according to a comprehensive analysis provided first to Axios that shows Michigan spends an average of more than $700,000 annually on each such case. Why it matters: The cost burden falls unevenly across the country, with states in a belt stretching through Appalachia to New England typically having bigger caseloads and a higher cost per case. Context: Opioid use disorder — defined as frequent opioid use and unsuccessful efforts to quit — is estimated to affect more than 6 million people in the United States, costing the nation an estimated $4 trillion last year, per health care consulting firm Avalere Health. The cumulative economic burden on patients, including years of life lost and reduced quality of life, exceeded $3 trillion in 2024, Avalere estimated. Zoom in: Michigan borders the states with the highest share of opioid misuse cases. At $742,799, our average cost per case is slightly higher than the national average, per the analysis from Avalere, which used 2017 figures to project 2024 net costs. Zoom out: Private businesses absorbed more than $467 billion in costs from lost productivity and health insurance costs, while the federal government bore about $118 billion in Medicare and other federal insurance costs, lost taxes and criminal justice expenses. It cost state and local governments more than $94 billion, with about $42 billion of that going toward criminal justice costs. What they're saying: Reports such as Avalere's help local officials across the state better understand the opioid crisis and how to address it with the state's $1.6 billion in opioid settlement funds, Joyce Fetrow, project director of the Northern Michigan Opioid Response Consortium, tells Axios. Every dollar spent on recovery provides a 10% return, Fetrow says. Investment in recovery services leads more people to spend on housing, transportation and other needs instead of their addiction. Follow the money: The projected cost of opioid use disorder in 2024 ranged from $419,527 per case in Idaho to more than $2.4 million in D.C.
Axios
21-05-2025
- Health
- Axios
Exclusive: Opioid crisis cost Massachusetts $145 billion last year, report says
The opioid epidemic cost Massachusetts nearly $145 billion in 2024, according to new research from Avalere Health. The big picture: The Washington-based health care consulting firm's research examines the economic toll of the epidemic that has claimed hundreds of thousands of lives in Massachusetts. The estimated national cost reached nearly $4 trillion in 2024, per Avalere's estimates provided to Axios exclusively. Threat level: While opioid-related overdose deaths have declined in recent years, Massachusetts is one of the states where opioid use disorder is most prevalent. OUD affects more than 2.5% of the population, similar to in New Hampshire, Nevada and Kentucky. Wyoming, Hawaii, Washington, D.C. and Minnesota had the lowest rates, falling below 1%. In terms of cost, Massachusetts' estimated $145-billion loss was one of the highest in the nation in 2024, per Avalere's estimates. How it works: Avalere determined the financial burden of OUD by analyzing relevant healthcare expenses, lost wages and work productivity, lost tax revenue, police and court costs and other factors. By the numbers: Opioid use disorder cost patients alone an estimated $111 billion in terms of reduced quality of life and life lost overall. Individuals and households faced a collective $9.2 billion loss last year in lost wages and other expenses, per Avalere's estimates. Avalere also estimated major hits to businesses ($17.5 billion), the federal government ($4.3 billion) and state and local governments ($3.4 billion). Police, court and correctional expenses related to people with OUD accounted for 40% of state and local government costs, per Avalere. Avalere also estimated cost savings from using medication and behavioral therapy to treat OUD.
