Disorders associated with the mind, the cost of the treatment
of which is often borne by government.
Until the twentieth century, the cost of treating patients
with mental illnesses—for example, depression, bipolar disorder (a manic depression that can result in death), schizophrenia, obsessive-compulsive disorder, and Alzheimer’s disease—
was the responsibility of families or the state in which the
patient lived. For the past 100 years, however, more of the burden of treatment has shifted to the federal government. In
terms of indirect costs, mental illness results in a loss to the
U.S. economy of about $79 billion annually. This amount includes the loss of productivity for the patient, productivity lost
by family members caring for the individual, the incarceration
of mentally ill patients, and losses incurred by premature
death because of accident or disease. The productivity loss accounts for more than 80 percent of the indirect costs.
The federal government, private insurance companies,
and individuals absorb the direct costs for the treatment and
care of persons suffering from mental illnesses. In 1996 the
total spent on the treatment of mental illness exceeded $99
billion. Of this amount, $13 billion was spent for substance
abuse and another $18 billion for the treatment of
Alzheimer’s disease. As the population in the United States
ages, the amount appropriated for the prevention and care of
Alzheimer’s and other forms of dementia will continue to increase. The federal government pays about 53 percent of the
direct costs for mental illness treatment; insurance companies cover more than 24 percent; and private individuals pay
the remaining expenses out of pocket. In 1996 the total
amount of expenditures on mental illness equaled 7 percent
of the health care budget. The cost continues to increase at a
rate of 7 percent annually; most of the additional expenses
are because of higher costs for prescription drugs.
—Cynthia Clark Northrup
References
Barry, Patricia D. Mental Health and Mental Illness.
Philadelphia: Lippincott-Raven, 1998.