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LOCATION: Home > Check Up > Estimated Cost of Addiction

Estimated Cost to US Corporations

The following estimates are based on a National Institute on Drug Abuse (NIDA) and an Arizona State University study. Individual corporation's situations may vary and these estimates are based on national statistics. However, this data will provide an approximation of the cost of substance abuse to your company:

A) Number of full time employees.
B) Total annual wage and benefit costs.
C) Average wage and benefit cost/employee (B divided by A).
D) Number of employees impaired by substance abuse (10% of A).
E) AT BEST, an impaired employee operates at only 75% of his/her expected norms;* therefore, the LOST PRODUCTIVITY is (D times C times 25%).
F) In addition, 20% of health insurance benefits are paid to cover substance abuse related claims; therefore, your INCREASED HEALTH INSURANCE COST is (total annual health insurance claims times 20%).
G) Substance Abuse costs your company an ANNUAL MINIMUM of (E plus F).

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Note: This estimate is a minimum and does not take into account theft of company property to pay for drug habits nor costs of damage to company property due to accidents/carelessness of impaired employees.
*estimate from Los Angeles AFL-CIO.

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