This report summarizes a published study (Wickizer et al., 2006) that analyzed the impact of chemical dependency treatment on medical costs for GA-U clients in Washington State. Cost savings for GA-U clients who received chemical dependency treatment were significantly lower compared to GA-U clients who needed, but did not receive, treatment. The estimated average reduction in medical costs was $210 per member per month, or $2,520 per year. Findings are consistent with other studies that have found that chemical dependency treatment provided to individuals with established need can significantly reduce use of emergency rooms and inpatient medical care.
