The opioid crisis' economic impact in Michigan
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Opioid misuse is as much an economic problem as a public health one, according to a comprehensive analysis provided first to Axios that shows Michigan spends an average of more than $700,000 annually on each such case.
Why it matters: The cost burden falls unevenly across the country, with states in a belt stretching through Appalachia to New England typically having bigger caseloads and a higher cost per case.
Context: Opioid use disorder — defined as frequent opioid use and unsuccessful efforts to quit — is estimated to affect more than 6 million people in the United States, costing the nation an estimated $4 trillion last year, per health care consulting firm Avalere Health.
- The cumulative economic burden on patients, including years of life lost and reduced quality of life, exceeded $3 trillion in 2024, Avalere estimated.
Zoom in: Michigan borders the states with the highest share of opioid misuse cases.
- At $742,799, our average cost per case is slightly higher than the national average, per the analysis from Avalere, which used 2017 figures to project 2024 net costs.
Zoom out: Private businesses absorbed more than $467 billion in costs from lost productivity and health insurance costs, while the federal government bore about $118 billion in Medicare and other federal insurance costs, lost taxes and criminal justice expenses.
- It cost state and local governments more than $94 billion, with about $42 billion of that going toward criminal justice costs.
What they're saying: Reports such as Avalere's help local officials across the state better understand the opioid crisis and how to address it with the state's $1.6 billion in opioid settlement funds, Joyce Fetrow, project director of the Northern Michigan Opioid Response Consortium, tells Axios.
- Every dollar spent on recovery provides a 10% return, Fetrow says. Investment in recovery services leads more people to spend on housing, transportation and other needs instead of their addiction.
Follow the money: The projected cost of opioid use disorder in 2024 ranged from $419,527 per case in Idaho to more than $2.4 million in D.C.
- Some of the regional variation in costs is from lost tax revenue, which varies by state. The local availability of treatment for opioid use disorder may also drive the cost, said Avalere's Margaret Scott.