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Impact of Managed Care on Substance Abuse Treatment: A Report of the American Society of Addiction Medicine

NCJ Number
186330
Journal
Journal of Addictive Diseases Volume: 19 Issue: 3 Dated: 2000 Pages: 13-34
Author(s)
Marc Galanter M.D.; Daniel S. Keller Ph.D.; Helen Dermatis Ph.D.; Susan Egelko Ph.D.
Date Published
2000
Length
22 pages
Annotation
This report examines research on the impact of managed care (MC) and related developments on drug treatment, with emphasis on the impact on the availability of proper treatment for addicted individuals.
Abstract
The literature review reveals that a trend toward carve-out and for-profit MC organizations is associated with lower financial incentives for intensive treatment than in earlier staff-model and not-for-profit MC organizations. The value of drug abuse insurance coverage has declined by 75 percent between 1988 and 1998 for employees of mid-size to large-size companies, compared with only an 11.5 percent decline for general health insurance. The shift towards MC has also been associated with a drastic reduction in the frequency and duration of inpatient hospitalization; no clear indication exists that a corresponding increase in outpatient support has offset this reduction. In addition, a survey of physicians conducted by the American Society of Addiction Medicine revealed that the majority believed that MC had a negative impact on detoxification and rehabilitation, as well as on their ethical practice of addiction medicine. The analysis concludes that MC has contained costs, but unintended consequences are the decreased value of drug treatment benefits, reduced availability of appropriate care, and reduced autonomy of clinicians to make treatment decisions for the individuals they treat. 58 references (Author abstract modified)

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