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With limited funding
available for social services in general, how can I make a case for the
cost-benefit of substance abuse prevention?
The economic and social costs of substance abuse are staggering. According
to one study, the United States spent 428 billion dollars on substance
abuse expenses in 1995, or 1,600 dollars per person (Rice, 1999). This
figure includes the following costs:
- Substance abuse treatment, other healthcare, and related expenses
- Criminal justice and victimization costs from crime
- Lost wages, production and taxes resulting from injury and premature
death
The majority of these expenses come from the use of tobacco (138 billion
dollars), followed by alcohol (176 billion dollars), and finally illicit
drugs (114 billion dollars).
Other studies have documented the cost benefit of substance abuse prevention
services such as school-based prevention education, parent outreach and
training, and community anti-drug coalitions. Seven of these studies are
summarized below:
- Caulkins et al. (1999) estimated benefits of two universal prevention
programs (ALERT and Life Skills Training) to be a savings of $2.40 for
every $1.00 spent based on fewer cocaine users.
- Holder (2000) reported benefits of environmental programs including
community task forces, responsible server training, increased drunk-driving
enforcement, among others to be $2.88 in savings for every $1.00 spent
based on fewer automobile crashes.
- Karoly et al. (1998) estimated benefits of the Perry Preschool Project
and the Elmira Prenatal Early Infant Program at $2.00 and $4.00 respectively
per $1.00 spent based on reduced crime and welfare, and on increased
earnings and education
- Pentz (1995) estimated benefits of a universal tobacco prevention
program, which included school curriculum, mass media, parent involvement,
among other strategies, to be $8.12 for every $1.00 spent, based on
reduced demand for social services.
- Schweinhart et al. (1993) estimated benefits of the Perry Preschool
Project—a selective program consisting of classroom activities and home
visits—to be $8.74 for every $1.00 spent based on reduced crime, welfare,
and victims of crime, and on increased levels of earnings and education.
- Swisher (2001) estimated the benefits of the Life Skills Training
program that reduced the number of pack-a-day tobacco smokers to be
$19.64 for every $1.00 spent based on reduced health-care costs.
Overall, these studies estimated that for every dollar spent on substance
abuse prevention services, between approximately 2 and 20 dollars are
saved. Benefits range from reductions in crime, automobile crashes, demand
for social services, and health care costs, and increases in education
level and earnings. It is important to note the variation among these
studies in several areas such as: the population examined; whether the
figures are hypothetical, estimated, or based on actual costs; and the
type of prevention approach being examined.
This FAQ is based on:
Prevention Works! Costs Benefit Estimates from Prevention Research. Prepared
by CSAP/SAMHSA for the 2001 NPN Research Conference.
Related Resources:
- More information on several of these programs, as well as on other
effective prevention programs, visit the Database Prevention Programs:
http://www.hhd.org/capt/default.asp
- National Institute on Drug Abuse. (1998). Cost-Benefit/Cost-Effectiveness
Research of Drug Abuse Prevention: Implications for Programming and
Policy. NIDA Research Monograph, Number 176.
- Henrick Harwood, Douglas Fountain, and Gina Livermore. (1998). The
Economic Costs of Alcohol and Drug Abuse in the United States 1992.
Bethesda, MD: National Institute on Drug Abuse: http://www.drugabuse.gov/about/AboutNIDA.html
References
Caulkins, J. P, et al. (1999). An Ounce of Prevention, a Pound of Uncertainty:
The Cost-effectiveness of School-based Drug Prevention Programs. Rand
Corporation, Santa Monica, CA.
Holder, H. D. (2000). Community Prevention of Alcohol Problems.” Addictive
Behaviors, 25(6), 929-942.
Karoly, L. A., et al. (1998). Investing in Our Children: What We Know
and Don’t Know about the Costs and Benefits of Early Childhood Interventions.
Rand Corporation, Santa Monica, CA.
Pentz, M. A. (1995). Costs, Benefits, and Cost Effectiveness of Comprehensive
Drug Abuse Prevention. In W. Bukoski and R. Evans (eds.), Cost-benefit/Cost-effectiveness
Research of Drug Abuse Prevention: Implications for Programming and Policy,
Research Monograph Series, No. 176., 111-129. National Institute on Drug
Abuse, Rockville, MD.
Rice, D. P. (1999). Economic Costs of Substance Abuse, 1995. Proceedings
of the Association of American Physicians, 111(2), 109-118.
Schweinhart, L. J., Barnes, H. V., and Weikart, D. P. (1993). Significant
Benefits: The High/Scope Perry Preschool Study Through Age 27. High/Scope
Educational Research Foundation, Ypsilanti, MI.
Swisher, J. D. (2001). The Costs, Cost-Effectiveness, and Cost-benefit
of School and Community Counseling Services. In D. Locke, J. Meyer, and
E. Herr (eds.), Handbook of Counseling, Sage, N. Y.
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