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Can Tackling Addictions Reduce Medicaid Costs?

By June 13, 2025No Comments

Thank you to Jasmine Laws from US Newsweek for inviting our Chief Medical Officer to speak about treatment for substance use disorder and how it relates to Medicaid costs.

Click on the button below to access the original publication.

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A recent Newsweek article explores the connection between addiction treatment and Medicaid spending, highlighting how improved access to care for substance use disorder (SUD) may reduce long-term healthcare costs. As part of the piece, MATTERS’ Chief Medical Officer, Dr. Joshua Lynch, shared insights as to why Medicaid enrollees with substance disorders tend to have higher health care costs.

Dr. Lynch told Newsweek reporter Jasmine Laws that many people with substance use disorder experience co-occurring mental or physical health conditions. Treating SUD in addition to other health issues like high blood pressure, diabetes, or mental health disorders can be complicated, and it requires a comprehensive approach.

However, many people with SUD face blame, shame, and stigma when attempting to access care. According to Dr. Lynch, people with SUD may “experience more fragmented care and more challenging access to high-quality, lower-cost care and preventative services.”

While Emergency Medical Services (EMS) and hospital systems remain on the frontlines of the overdose crisis, these acute services are often costly and reactive. Investing in prevention and timely connection to community-based treatment is not only more cost-effective but also more sustainable in addressing SUD.

These sentiments were echoed by the other experts featured in the recent Newsweek article. Dr. Carrie Fry of Vanderbilt University stated that one important step in cutting Medicaid costs would be to make it easier for people with SUD to start treatment and access medication. She added that only about half of Medicaid enrollees with opioid use disorder receive evidence-based treatment each year.

While political discussions around Medicaid funding continue, one point remains clear: expanding access to timely, compassionate treatment and resources for individuals with SUD is the most cost-effective way to combat the overdose crisis.

MATTERS connects people with opioid use disorder to community-based treatment and resources through its rapid referral platform and harm reduction initiatives. Click here to learn more about the MATTERS program.

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