Behind every job title is a life worth saving.
Employers have long existed in a middle ground between healthcare provider and patient, offering employees
As the overdose crisis continues to rage on nationally, with more than 80,000 people dying from overdose in the U.S. in 2025 alone, employers are recognizing that addiction coverage isn't
A trend is emerging in which some employers are covering a portion or all of the costs of addiction treatment for employees. This scenario provides a unique opportunity for companies to become more involved in the health of their employees and create a critical pathway to treatment that has been unavailable for too many, for too long.
As the Director of Community Relations for a leading addiction treatment provider, I'm encouraged by this development. Employees aren't just numbers — they're real people who deserve a chance to recover from their disease. Apart from that, it just makes good business sense for employers, whose operations are negatively impacted in a multitude of ways when an employee's addiction goes untreated.
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Addiction is a company disease
You may have heard the phrase "addiction is a family disease"— a reference to the far-reaching impact of addiction on the whole family unit. If you're an employer, you must also realize that addiction impacts a business in a similar way. The effects of an SUD expand far beyond the employee who struggles with it.
Take, for instance, the issue of absenteeism. Employees with SUDs miss up to 50% more work days than their peers and have higher turnover rates. Not only does this damage productivity, but it may also harm morale amongst other staff forced to pick up the slack.
Untreated SUDs also result in significantly increased healthcare costs for employers ($15,640 per year vs. $7,409 for employees who don't have SUD), per the National Safety Council and NORC at the University of Chicago.
Employers who are recognizing that the effects of one employee's SUD reverberate throughout the entire business are now seeking out addiction treatment solutions that are timely, outcome-focused and tailored to workforce performance.
The Workplace: A new pathway to recovery
During the COVID-19 pandemic, we began to see a shift in coverage offered by employers who were waking up to the dire need for additional behavioral health services for staff who were isolated and struggling with substance misuse in
Between 2020 and 2022, almost 60% of large employers expanded the behavioral health benefits offered to employees, according to the Business Group on Health. A portion of these investments were devoted to digital and virtual platforms. As a result, telehealth for substance use treatment rose by over 1,300% in the first six months of the pandemic.
It's been heartening to see companies taking a proactive role in supporting not just the physical health of their employees, but their mental and behavioral health as well. In an ideal world, employers will see themselves not just as benefit providers but as strategic stakeholders in workforce recovery.
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The employer as payer: A model for the future
As employers continue to move into payer roles, there are various emerging models they may be able to follow. While there likely won't be a one-size-fits-all approach, some combination of the following methods can enhance addiction treatment for employees in need of care:
- Direct contracting: This model sees employers bypassing insurance providers and working directly with treatment providers. This can allow for faster access to treatment, tailored programming for patients, and great transparency regarding treatment costs.
- Enhanced employee assistance programs (EAPs): EAPs have long existed to allow employers to assist their employees in stressful situations. By enhancing these programs, employers can assist employees in obtaining support services like long-term outpatient therapy, family involvement, and post-treatment recovery coaching.
- Centers of excellence (COEs): Employers may also consider designating certain addiction treatment providers as COEs based on various quality metrics.
- Bundled and value-based models: Some employers may seek to bundle services, or link payment to recovery milestones. This can encourage quality addiction care for employees.
- On-site and virtual services: In the digital age, telehealth is becoming a mainstay of medical care, and employers are taking notice. Some may also consider investing in on-site clinicians to further open avenues for their employees to obtain addiction treatment.
How the employer-provider partnership may change addiction treatment
One of the major changes on the horizon for treatment providers is a reassessment of and emphasis on outcome measurement. Many employers operate with an outcome-driven mindset, and providers would benefit from tracking key recovery metrics such as treatment completion rates, return-to-work outcomes and relapse prevention.
Customized care that considers a patient's unique needs will likely also see renewed emphasis in the coming years, along with cultural sensitivity for diverse patients and workforces.
And finally, many employers may expect treatment providers they work with to coordinate with their occupational health and HR departments to ensure that employees have a plan for reintegrating into the workforce after treatment.
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Leading the way, saving lives
If there's anything the overdose crisis has taught us, it's that addiction treatment is not a nice-to-have perk. It's crucial, and employers have the opportunity to change the landscape of treatment access for their staff.
While there will no doubt be a period of adjustment for all parties, the potential benefits of companies leading the way in healthcare will likely outweigh the growing pains. And more access to treatment for the workforce will mean more lives saved.
Forward-thinking companies aren't just adapting — they're redefining the future of healthcare. By leading the charge, they're setting the stage for healthier workplaces, empowered employees, and a lasting transformation in how care and compassion show up on the job.
