The Financial Impact of Mental Health Disorders

In 2013, the United States spent $201 billion on mental health care. Experts think this cost will be about $3 trillion annually by 2030. But the financial costs extend far beyond healthcare expenses. Along with direct medical costs, mental health conditions can lead to indirect costs such as missed workdays and lost wages.¹

A global concern

Mental health disorders are a common challenge all around the world. They affect people of all different ages and backgrounds. In 2023, nearly 1 in 4 adults, or more than 50 million people in the United States, had a mental health disorder. About 2.7 million young people had depression.²

Direct costs

Direct costs are directly related to diagnosing, treating, and managing mental health disorders. These include:³

• Doctor’s visits – People with mental health disorders often need frequent visits with mental health experts and doctors.
• Medicines – These are often prescribed for treatment.
• Therapy and counseling – Therapy sessions and counseling services are essential parts of treatment.
• Medical tests – Blood work and other tests may be needed to rule out other medical conditions.
• Travel – Going to and from medical appointments, therapy sessions, and support group meetings can be costly.
• Hospital stays – In severe cases, people may need to be hospitalized due to a risk of self-harm or suicidal thoughts.

Indirect costs

While less obvious, indirect costs can also have a major financial impact on people living with mental health conditions. These costs include:^3,4

• Lost wages – Reduced work hours or missed workdays due to symptoms can lead to a drop in income. This also includes missed income for caregivers.
• Decreased productivity – Trouble concentrating or completing tasks can result in lower job performance. Sometimes, this can lead to missed opportunities or job loss.
• Strained relationships – A mental health disorder can take a toll on a person’s emotions and relationships. It can put stress on their caregivers and loved ones. Strained relationships can result in a loss of income.

Some expenses are impossible to avoid. But there are some ways to deal with financial troubles effectively. Some tips include:⁵

• Health insurance – Review your insurance policy to understand its coverage for therapy, medicines, and hospital stays.
• Medication assistance programs – Explore drug assistance programs offered by drug companies. These programs can reduce your drug costs.
• In-network providers – Choose therapists or counselors who are in-network with your insurance plan. This will reduce your out-of-pocket therapy costs.
• Group sessions – Consider group therapy or support groups. This type of therapy can be less expensive than 1-on-1 therapy.
• Generic drugs – Discuss switching to generic versions of medicines with your doctor. Generic drugs are often more affordable.
• Employer benefits – Learn about all the benefits offered through your job. For example, employee assistance programs (EAPs) may offer counseling services or flexible work arrangements to meet your treatment needs.
• Budgeting – Create a budget that includes medical expenses, therapy costs, and potential income loss. This may help reduce financial stress.
• Communication – Openly discuss your concerns with your doctor. They may recommend different treatments or resources to lower costs.
• Self-care – Add self-care habits to your daily routine. Doing so might lead to fewer doctor’s visits and medical expenses in the long run.

With the increasing number of people in the United States affected by mental health disorders, raising awareness of their financial costs is crucial. By understanding and addressing these costs, those living with mental health conditions and their loved ones can protect their finances and overall well-being.