Is providing mental health care cost-effective?
Serious mental illness (excluding alcohol/drug abuse) affects about 1 out of 10 Americans and costs $100-200 billion a year in lost productivity, absenteeism, and health care expenses. Much of this cost reflects the increased use of routine medical services by people who do not receive treatment for mental illness. Indeed, one study found that people with untreated mental disorders increased utilization of medical services at a rate six times greater than those who did receive treatment. (But, like with medications, the mental health carve-out does not have to pay for these medical services; those costs get passed on to the primary insurer, employer, and individual.) Providing psychological services not only reduces the use of general medical services, it can cost less in the long run than long-term treatment with medications for mental problems. One study found that a popular medication for treating depression would cost a third more over a period of two years than a reasonable course
