The Economic Burden of Mental Illness
Dorothy P. Rice Sc.D.(Hon.)1,
Sander Kelman Ph.D.2, and
Leonard S. Miller Ph.D.3
1 School of Nursing (N631Y), University of California, San Francisco, San Francisco, California 94143
2 New Jersey Division of Medical Assistance and Health Services in Trenton
3 School of Social Welfare at the University of California, Berkeley
Mental illness imposes a substantial burden on individuals and society. Using data from national surveys and a newly developed methodology for calculating costs, the authors estimate that in 1985 the total economic costs of mental illness were $103.7 billion. Of this total, direct treatment and support costs were $42.5 billion, or 11.5 percent of total personal health care spending for all illnesses. Morbidity costs-the value of reduced or lost productivity-amounted to $47.4 billion. Mortality costs-the lost value of productivity due to premature death resulting from mental illness-were estimated to be $9.3 billion, or 5.1 percent of total productivity losses for all deaths. Other related costs, including the cost of caregiver services, amounted to $4.5 billion.
Note:
This paper is based on research conducted for the Alcohol, Drug Abuse, and Mental Health Administration and the National Institute on Drug Abuse (contract 283-87-0007). The authors acknowledge the research assistance of Sarah Dunmeyer and the computer and statistical assistance of Scott Hood.