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Mental health inequalities not only harm individuals, they can also hinder economic prosperity.
A new analysis from Deloitte predicts that mental health inequities could lead to nearly $478 billion in avoidable costs over the remainder of this year.
If left unchecked, this number suggests it could grow to as much as $1.3 trillion by 2040. This equates to approximately $42,000 per person living in the United States.
Early death was one of the main drivers of these expenses. Analysts say avoidable costs associated with premature deaths could exceed $292 billion in 2022, and if current cost trajectories remain unchanged, annual costs of premature deaths could reach nearly $912 billion in 2040. We predict that there will be.
Another major mental health-related factor driving up spending is lost productivity, which is projected to account for approximately $116 billion in avoidable costs this year. The study confirms previous findings showing a link between mental health conditions and reduced productivity, with depression in particular being a leading cause of absenteeism at work. According to the report, people with depression take more sick days than people without depression.
Presenteeism (a phenomenon that exists in the workplace but is not fully functioning due to mental health issues) is also a major factor in reducing productivity. Additionally, mental illness can lead to disability claims, which can result in long-term reduced or lost productivity and additional insurance costs.
what is the impact
Certain demographics, particularly some racial/ethnic groups, members of the LGBTQIA+ community, people with low incomes, people living with disabilities, and people involved in the justice system, including parolees and incarcerated people, are less likely to be affected by these trends. There is a balanced influence.
Although white populations have the highest prevalence of mental health diagnoses, non-white populations tend to bear more of the costs associated with mental health problems. The authors attribute this to the legacy of long-standing structural racism and policies that disadvantage certain people, as well as social and economic circumstances.
In general, the high prevalence of mental illness is correlated with the high prevalence of other chronic diseases. The report found that low-income people with mental illness have a higher prevalence of other chronic conditions, and estimates are likely low due to cultural bias and lack of access to health care.
Groups with mental health problems miss more days from work and have higher unemployment rates than groups without such problems. People with mental health conditions have higher rates of other chronic conditions, more absenteeism from work, and higher unemployment rates across all age groups.
According to the report, reducing health disparities could reduce costs to health plans and systems associated with increased emergency department visits, longer hospital stays, and poorer health outcomes that lead to unnecessary hospitalizations. It is said that there is. This could create value for state and federal agencies as well as the companies that pay for health care.
Improved health outcomes also improve quality ratings for both plans and providers, making them eligible for higher payments from Medicare and other value-based care programs designed to reward quality. Possible, the authors say.
Equity-centered efforts require additional targeted spending, but data show that achieving mental health equity can avoid increased cost burdens in the long term. .
These efforts may include academic research. Establish an integrated care model. Employers will provide more mental health and wellbeing resources. Local governments then distribute providers and other resources where they are needed most but least found, such as areas with high mental health needs.
bigger trends
According to a 2023 KFF study, the ongoing mental health crisis in the United States is also placing a disproportionate burden on Medicaid, in part because costs to federal programs for behavioral health services exceed those of other This is because it costs more than the payer.
Additionally, workforce challenges create barriers to accessing care, with nearly half of the U.S. population (47%, or 158 million people) living in areas with mental health workforce shortages. . The analysis shows that workforce challenges extend far beyond Medicaid, where shortages could be even worse.
Jeff Lagasse I am the editor of Healthcare Finance News.
Email: jlagasse@himss.org
Healthcare Finance News is a publication of HIMSS Media.
