The economic burden of untreated mental illness

November 7, 2023

Source: Taylor, et al JAMA Health Forum October 13, 2023 LINK

Those who suffer from serious mental illness are most likely to have advanced medical illnesses, and often die prematurely. Researchers reviewed data from multiple government databases and used economic data that they gleaned from the medical and social science literature to assess the economic burden of untreated mental illness in a single state, Indiana. They found the economic burden to be significant - a total of about $4.2 billion annually in that state alone.

Much of the societal cost was for those with serious mental illness, but you can see that the costs of absenteeism and presenteeism are higher in those with less serious mental illness (who were more likely to be employed). Indirect costs, the middle set of bars, represented four times as much societal cost as direct medical costs.

Implications for employers:

-        Untreated mental illness is a major source of lost productivity and increased claims expense faced by employer sponsored health insurance.

-        Increased availability of virtual care for mild to moderate mental health needs can help improve access and help more people find mental health clinicians that are culturally responsive. However, employers should be aware that some carriers are terminating coverage of some virtual mental health services.

-        Employer sponsored health plans must also address employees or family members with serious mental illness, through access to appropriate in-person care and behavioral health care management or other programs.

-        This research shows the potential social and economic value of improving access to mental health care.

The Department of Labor has ramped up its enforcement of the Mental Health Parity and Addiction Equity Act (MHPAEA), and self-insured employers bear responsibility for compliance. 

Tomorrow: Preventing cancer by treating or preventing infections

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