June 11, 2012

Expanding Insurance Coverage May Not Suffice to Increase Addiction Treatment

A recent study of Massachusetts’ experience shows that extending required health insurance coverage to include substance abuse treatments may not be enough to increase the treatment rate for people with addictions. This is according to a recent study in Health Affairs.

Like the federal Affordable Care Act, Massachusetts’ universal health insurance law includes substance abuse services as an essential benefit. Yet according to the study, the rate of substance abuse treatment in Massachusetts remained relatively stable two years after the state’s law was enacted, when compared to the treatment rate two years before it was enacted. In assessing treatment rates, the study considered treatment admissions, volume of delivered services, and service revenues and expenditures.

Among other things, the study found that the percentage of uninsured Massachusetts residents who are substance abusers remains high (about 3% of Massachusetts residents remain uninsured). The study also found that among the insured, copayments may deter treatment. The authors suggest that to increase substance abuse treatment rates, in addition to insurance coverage, changes may be needed in other areas, such as eligibility criteria and incentives to seek treatment.