MISSOULA –

Previous estimates that the economic cost of alcohol abuse is $511 million per year do not include costs from alcohol-related crashes with injuries. By adding the economic cost of these injury crashes, the total impact of alcohol abuse in Montana increases by $131 million, bringing the annual cost of alcohol abuse in Montana to $642 million, according to a University of Montana economist.

“Five people are injured or killed each day in Montana because of alcohol-related vehicle crashes,” said Steve Seninger, an economist at UM’s Bureau of Business and Economic Research. “This is a cost of $621,000 per day paid for by all Montanans.”

In the recently released report, “Economic Costs of Alcohol-Related Vehicle Crashes in Montana,” Seninger said that victims of alcohol-related crashes suffer more severe injuries than victims from crashes not involving alcohol. State-collected data show that one-half of the alcohol crash injuries involve Montanans under age 30 and include high-speed rollovers, rear-ending or T-boning another vehicle and running into power poles, trees or concrete abutments.

The severity of alcohol crash injuries results in hospitalization for crash victims, with more than half of these hospitalizations lasting 24 days or longer, up to extreme cases of 50 days in the hospital. 

Seninger’s research shows costs of $81,000 for each injured survivor of an alcohol-related crash in 2005. This $81,000 breaks down as health care costs of $19,500, productivity losses of $16,000 (both individual earnings loss and employers’ costs), legal and insurance costs of $15,500 and property damage of $13,800. Losses in quality of life make up the remaining $16,200. 

The $642 million economic cost of alcohol abuse are costs that occur every year and accrue to individual victims and their families, employers, health care and emergency service providers, and taxpayers.

Alcohol abuse costs are borne by all Montanans from all socioeconomic levels regardless of whether they live in rural or urban areas. Costs also are borne by local and county governments. Seninger’s report estimates the cost of alcohol abuse for Montana counties using county-level data on alcohol-related vehicle crashes with fatalities and with injuries. 

“We have to remember that these costs are the financial ones and do not include the toll on families and communities in psychological and human suffering,” Seninger said. “Each year as a consequence of drinking and driving, children die, families are torn apart and people’s lives are shattered.”

Copies of the report are available on the BBER Web site, http://www.bber.umt.edu. For more information call 406-243-5113.

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