Writer: Sara Suarez
2 min read February 2022 —A study suggests that people who get help for mental health issues, particularly on an out-patient basis, end up with lower overall healthcare costs.
The study, published in November by Evernorth here, found that when patients are diagnosed with behavioral conditions, such as depression, anxiety, or substance abuse disorder, their healthcare costs go down by an average of $3,109 per person over a two-year period. While it’s understood how physical medical conditions can have a negative impact on mental health, this study finds new evidence on how the reverse can also happen.
“Behavioral conditions can exacerbate physical symptoms as well as hamper medical treatment and recovery. That means addressing behavioral health issues for people with medical conditions offers significant potential for cost savings by driving better medical treatment compliance and improved overall health outcomes,” according to the study.
The findings come at a time of increased focus surrounding mental health in the wake of the pandemic and the isolation that ensued lockdowns and other measures. Giselle Cushing, Cigna’s market president for South Florida and the Caribbean, told Invest: that, “one out of four adults in the United States has struggled with depression since the pandemic started and 40% of adults have struggled with mental health or substance abuse.”
Healthcare costs in the United States have become one of the most debated and heated arguments in the legislative arena over the past few years. According to a National Health Expenditure Accounts report, healthcare prices rose in the United States by 9.7% in 2020, to a staggering total of $4.1 trillion or $12,530 per person.
Floridians are exceptionally affected by the cost of healthcare. Forty of the 100 most expensive hospitals in the United States are located in Florida, according to a study done in 2020 by National Nurses United. The study found that these “U.S. hospitals charge on average $417 for every $100 of their total costs, in statistical terms a 417 percent Charge-to-Cost Ratio.” Florida has a 794.07% Average Hospital Charge-to-Cost Ratio. The report can be found here.
Another report by LendingTree found that Florida occupies 10th place on the list ranking disparity of middle-class income and health insurance costs. However, the study found that Floridians spend an average of 13.4% of their income on healthcare-related expenses, not much higher than the national average of 11.2%.
Giselle told Invest: that transparency is vital in understanding healthcare costs.. “When you go to a store, you know exactly what the costs of goods are. For healthcare, costs haven’t been transparent. The ability to know the cost of care is very important.” Florida passed the HB 1205 bill in 2020 that prohibits price transparency limits with patients.
“For us, it’s critically important because most of our employer groups in South Florida are self-funded, which means the cost of care is paid directly by employers, their employees and families. As we are administrating a client’s benefits plan, it’s important that we have the most affordable and predictable costs for our clients and customers,” Giselle said.
