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Costs


The economic costs of alcohol and other drug problems to the U.S. economy are staggering, with some estimates as high as $414 billion. Substance use disorder remains one of the most important workforce challenges facing employers today.

Substance use disorders among workers and their families are tremendously costly for employers because they directly contribute to higher healthcare expenses, lost productivity and increased absenteeism, disability and turnover. But these costs can be drastically cut by workplace policies and practices that help reduce alcohol and other drug problems, promote education and wellness and support early intervention. 

Not addressing substance use disorder in the workplace is costly:

  • Healthcare costs for employees who have alcohol problems are twice those for other employees:(i)
  • People with an alcohol problem use twice as much sick leave as other employees and are five times more likely to file workers compensation claims;(ii)
  • More than half of working family members of those with an alcohol problem report that their ability to function at work and at home was negatively impacted by their family member’s drinking;(iii) and
  • Alcoholism is estimated to cost 500 million lost workdays annually.(iv)
  • The economic cost of excessive drinking in 2006 is estimated at $223 billion, with 72.2% attributed to lost productivity and 11% to health care costs.(v)

But research shows that investing in recovery delivers tremendous benefits.

(i) Robert Wood Johnson Foundation (2001). Substance abuse: The nation’s number one health problem. The Schneider Institute for Health Policy, Brandeis University.

(ii) Alcohol Problems Cost American Business. December 2002. Ensuring Solutions to Alcohol Problems, The George Washington University Medical Center.

(iii) Al-Anon Family Groups, Inc. 2000. 1999 Al-Anon/Alateen Membership Survey and Al-Anon Membership Assessment Results; Final Report.

(iv) SAMHSA (1999). Worker drug use and workplace policies and programs: Results from the 1994 and 1997 National Household Survey on Drug Abuse. Rockville, MD. U.S. Department of Health and Human Services.

(v) "Economic Costs of Excessive Alcohol Consumption in the U.S., 2006." American Journal of Preventive Medicine, Vol. 41, Issue 5, November 2011.