Carrum Health expands its treatment for substance use disorders

Carrum Health, a provider that has a history of value-based Centers of Excellence model, introduced a substance use disorder (SUD) treatment program to employers a year ago and now offers treatment of cannabis, cocaine, methamphetamine, and other stimulants, in response to the increasing employer demand. The issue of substance use is an escalating problem in the labor force of the U.S., with approximately 29 million employees, or one out of six working adults, having a substance use disorder (SUD). 

The 2021-22 study discovered 6.5 percent of full-time workers were above recommendations of cannabis use disorder, and use was greatest in states where recreational use is legal. It has led to serious health and economic problems for the employers, making it a point of crucial importance that effective and affordable prevention and treatment solutions are urgently required.

The value-based program offered by Carrum currently offers bundled care services on virtually all substances, like alcohol, opioids, sedatives, cannabis, and even stimulants such as methamphetamine and cocaine. Employer participation has been booming to more than 100 clients since it was launched in 2023, with a pilot of Fortune 50 retailers. Increase in substance use, identification of high out-of-network prices, and the requirement of employers to have quantifiable treatment results are the factors that push the model to grow. Employer-sponsored insurance plans are estimated to spend $35.3 billion a year on substance misuse, and most of the cost is attributed to alcohol and opioid misuse. When we add absenteeism, presenteeism, and turnover, the financial cost would easily be much greater. The National Institute on Drug Abuse estimates relapse rates of 4060% that contribute to additional costs and productivity losses.

The situation with cannabis legalization has also changed: over 15 thousand dispensaries have become active in 41 states, and 79 percent of Americans can find one dispensary near them, and the potency of products has been drastically increased. Carrum, who initially specialized in alcohol and opioids (7075 percent of cases), realized that there was a clear disparity in access to employees with other drugs. Consumers made visits to us to get cannabis and stimulants, and we felt that we should create high-quality choices for them, according to Christoph Dankert, the chief network officer at Carrum.

The model introduced by Carrum relates employees to the highest-level treatment centers in the country with zero out-of-pocket expenses and up to 45 percent savings to employers in the form of bundled and pre-negotiated rates. Its initial year earnings reflected half of the industry readmission rates. The Centers of Excellence vetted by the company, e.g., Hazelden Betty Ford and Recovery Centers of America, are rated based on evidence-based treatments, long-term sobriety, and long-term assistance.

Based on the same accountability-based model that has achieved 3045 percent savings in cancer and surgical care, the Carrum value-based addiction initiative aligns the incentives of the providers toward long-term recovery instead of a short-term discharge. With the increasing behavioral health rates, especially out-of-network expenditure that today takes a share of as much as 40 percent in the treatment of substance use, the employer is turning to the model proposed by Carrum. The number of covered lives is expected to increase by twice to 6.7 million in 2025, which is why the CEO of Carrum Sach Jain says it is a pivotal move to value-based care because employers are finding solutions to the root causes of increasing healthcare costs.