May 20, 2025   SOURCE: PR NewsWire

Research on Opioid Use Reveals States, Local Governments Spend $94 Billion Annually

WASHINGTON, May 20, 2025 /PRNewswire/ -- A new study from Avalere Health shows opioid use disorder (OUD) places tremendous financial and resource burdens on taxpayers and local communities. "The Cost of Addiction: Opioid Use Disorder in the U.S." is the first-of-its-kind study that reveals state and local governments shoulder >$94 billion annually with Massachusetts, Kentucky, Nevada, and New Hampshire reporting the highest rates.

OUD is diagnosed when individuals experience persistent and ongoing need to use opioids, which can involve prescription or illegal opioids, leading to significant distress or impairment in daily functioning. Approximately 6.1 million people in the U.S. have the disease, but only one in four receive recommended medications for treatment.

"Despite the well-established benefits of OUD therapies, individuals with OUD face significant barriers to treatment," said Margaret Scott, a Principal at Avalere Health. "Our study shows that barriers to care include physician stigmatizing and expressing reluctance to treat OUD patients, inadequate provider education and training, geographic distances to treatment locations, and social stigma."

Avalere Health conducted the research and modeled the costs and treatment-savings effects of OUD nationally and by state. The researchers focused their analysis on three key areas:

    --  Identifying the prevalence of OUD
    --  Modeling the costs of OUD
    --  Evaluating the cost savings of four ambulatory OUD treatments (i.e.,
        behavioral therapy alone; behavioral therapy plus methadone; behavioral
        therapy plus transmucosal buprenorphine; and behavioral therapy plus
        long-acting injectable [LAI] buprenorphine)

Avalere Health researchers discovered that the U.S. national average cost of OUD per case is nearly $700,000, with over $150,000 borne by government, businesses, and families. Of the treatments evaluated, long-acting injectables with behavioral therapy demonstrated the highest estimated annual per-case savings at $295,000. In the four states with the highest OUD cases, researchers outlined the total federal and state costs*:


                              States with Highest                 Total Cost                        Federal                          State
                 Rates of OUD                     Per State                        Government                     Government


                                                                                  Full Medicare, Other         Full State Taxes; Partial
                                                                                         Payers,                        Medicaid,
                                                                             Federal Taxes; Partial
                                                                                    Medicaid,
                                                                                Criminal Justice,            Criminal Justice, Substance-
                                                                                  Substance-Use                            Use
                                                                                   Treatment                      Treatment)



     Massachusetts                                         $144,895,949,191                  $4,255,634,513                  $3,359,009,934



     Kentucky                                               $95,471,988,174                  $3,233,361,824                  $2,086,744,658



     Nevada                                                 $47,118,796,683                  $1,784,369,907                  $1,245,128,525



     New Hampshire                                          $31,426,088,773                    $908,004,006                    $660,008,220

* The estimated cost of OUD by state can be accessed here.

"As states and local governments explore new strategies to reduce healthcare costs, encouraging public health, governments, and payers to prioritize OUD treatments can lead to greater savings," said Michael Ciarametaro, Managing Director at Avalere Health.

To download "The Cost of Addiction: Opioid Use Disorder in the U.S.," click here.

About Avalere Health
Avalere Health is guided by a single mission to make EVERY PATIENT POSSIBLE. Its Advisory, Medical, and Marketing capabilities move as one, ensuring every patient is identified, supported, treated, and cared for. Equally. Avalere Health is a global strategic partner, perfectly formed to solve the biggest challenges in health--at pace and at scale. The organization is united across the product lifecycle, uniquely positioned to understand every angle of life, health, and the human condition. Partnering with its clients, its experts are building a world where healthcare is not a barrier. And no patient is left behind. Visit www.avalerehealth.com and follow Avalere Health on LinkedIn.

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SOURCE Avalere Health