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Indicator 7: Workplace
NIDA (1999, November 5) reports that employees who abuse alcohol or drugs cost their employers "about twice as much in medical and worker compensation claims as their drug-free co-workers." In addition, various research activities in the workforce report that treatment significantly decreases the costs for, or paid by, employers, employees, and taxpayers.
Some recent studies by large companies report the following (CSAT, 1999):
- The U.S. Small Business Administration reports drug-free workplace programs costs $22-$50 per employee compared to estimated annual costs of $640 incurred by each untreated substance abusing employee.
- Aetna Federal Employee Health Benefit Plan showed overall health care costs of persons with alcohol dependence rose from $130 to $1,370 per month prior to treatment and dropped to $190 per month three years after treatment.
- Blue Cross/Blue Shield found that families' health care costs dropped by 87 percent after treatment, a reduction from $100 a month to $13.34 per month in the 5th year of treatment.
Employers report that employees who abuse alcohol and/or other drugs are less dependable and have decreased productivity. Specifically, employers report increased absenteeism, increased errors, higher insurance premiums, increased auto crashes, and sometimes death. Employees with substance use disorders are fired more often and switch jobs more frequently. An extensive cost effectiveness study in Ohio on the impact of treatment on job performance found absenteeism was reduced by 61 percent, incomplete work was reduced by 37 percent, and errors dropped by 36 percent (Close to Home Coalition, 1998).
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An extensive cost effectiveness study in Ohio on the impact of treatment on job performance found absenteeism was reduced by 61 percent, incomplete work was reduced by 37 percent and errors dropped by 36 percent.
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Currently, substance abuse negatively affects the workplace in many ways. The health and viability of the workplace is in serious jeopardy if alcohol and other drug use increases and goes untreated.
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