Tennessean health care columnist Getahn Ward writes about the discriminatory practices of Tennessee insurance companies that deny claims related to alcohol or substance use. These practices are protected under the state’s alcohol exclusion law (AEL). AELs were passed in the 1940s to discourage drinking and save insurance companies from alcohol-related claims.

Although major insurers say they do not deny claims based on alcohol or substance use, Ward reports that such refusals do occur. According to Ward, two claims linked to substance abuse worth more than $300,000 combined were recently denied at Vanderbilt University Medical Center. Without insurance, patients often cannot pay such a large bill and the burden is shifted onto the hospital. However, taxpayers may ultimately pick up the bill through funding state health programs like Medicaid.

Fearing denial of payment for their services, hospitals like the Johnson City Medical Center in East Tennessee have stopped testing and offering brief counseling for alcohol and substance use to trauma patients. Evidence-based screening and brief intervention, or SBI, is an effective method to help individuals at-risk for alcohol and substance abuse. In Tennessee, Ward cites Ensuring Solutions’ research that SBI practices could save businesses and residents in the state $245 million a year in extra health-care expenses.

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