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Forecasting the Cost of Chemical Dependency Treatment Under Managed Care: The Washington State Study

NCJ Number
167724
Author(s)
C Hansen
Date Published
1995
Length
85 pages
Annotation
This report relates the experience of Washington State in conducting an actuarial estimate of the cost of chemical dependency treatment; the report describes basic lessons learned about actuaries and actuarial studies and policy debates and analysis problems encountered.
Abstract
The focus is on what chemical dependency treatment modalities should be included in managed care health benefit packages, what caps or limits should be placed on chemical dependency treatment benefits, what organizations and individuals should be eligible providers, and how much patients should be required to pay. Report chapters cover major elements of an actuarial study, assumptions in substance abuse actuarial studies, procedures for estimating the effects of managed care, and guidelines for procuring an actuarial study. The report concludes drug treatment leads to a cost offset in medical care expenses. Two relevant documents from Washington State's experience are appended, a description of the benefit package and the final report of the actuary. References, tables, and figures

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