title: Evaluation of an innovative Medicaid health policy initiative to expand substance abuse treatment in Washington State.
abstract: State health policy making is rarely based on evidence derived from empirical analysis. An exception is an innovative policy established in 2005 in Washington State (Senate Bill [SB] 5763) to provide funding (approximately $30 million) to expand access to substance abuse (SA) treatment for Medicaid beneficiaries. The authors analyzed Medicaid claims data and other administrative data over a 7-year period, July 2001 through June 2008, for three cohorts of welfare clients (n ≈ 44,000) to assess the effect of SA treatment on health care expenditures. Regression analysis showed SA treatment to be associated (p < .001) with per member per month expenditure savings of approximately $160 to $385 depending on the welfare cohort. The aggregate annualized estimated saving ($16.8 million) equaled the cost-saving goal of SB 5763. While it may be tempting for policy makers to cut funding for SA treatment, this may be counterproductive and in the long-run increase Medicaid costs.
authors.affiliation: Division of Health Services Management and Policy, College of Public Health, The Ohio State University, Columbus, OH 43210, USA. twickizer@cph.osu.edu
authors.forename: Thomas M
authors.initials: TM
authors.lastname: Wickizer
authors.forename: David
authors.initials: D
authors.lastname: Mancuso
authors.forename: Alice
authors.initials: A
authors.lastname: Huber
mesh_terms: D006291:Health Policy; D006297:Health Services Accessibility / Q000331:legislation & jurisprudence*; D008484:Medicaid / Q000331:legislation & jurisprudence*; D012044:Regression Analysis; D019966:Substance-Related Disorders / Q000628:therapy*; D014481:United States; D014861:Washington