Untreated mental illness is costing Indiana more than $4 billion per year

October 7, 2022

Researchers across Indiana have completed their contributions to a report about mental health in the state. Among their findings, untreated mental illness costs Indiana approximately $4.2 billion each year.

The researchers observed the largest cost attributable to untreated mental illness was premature mortality, which is estimated to cost Indiana more than $1.4 billion per year. Productivity losses were estimated to cost $885 million each year, and direct health care costs added up to about $708 million.

Other estimated costs included the following direct and indirect costs:

  • $142 million to Medicaid (direct healthcare cost)
  • $567 million to private insurers (direct healthcare cost)
  • $106 million to Indiana’s criminal justice system (direct non-healthcare cost)
  • $9 million to Indiana through homeless supports (direct non-healthcare cost)
  • $566 million for caregiving (indirect cost)
  • $407 million in unemployment for those unable to work (indirect cost)

The findings were published as part of a full report from Indiana Behavioral Health Commission.

“By identifying the economic costs of untreated mental illness, we provided quantitative evidence that supports what many families and communities are acutely aware of—that the consequences of inadequate care for mental illness are enormous,” said Justin Blackburn, PhD, associate professor of health policy and management at the Indiana University Richard M. Fairbanks School of Public Health. “This work, along with the full Behavioral Health Commission Report, brings new awareness to mental health in the State of Indiana and identifies opportunities for improving access to care.”

The team conducting the analysis of the cost of untreated mental illness in Indiana included WISE Indiana (a partnership between the Indiana Clinical and Translational Sciences Institute and the Indiana Family and Social Services Administration), the Irsay Institute, the Fairbanks School of Public Health, and the IU Bloomington O’Neill School of Public and Environmental Affairs.

“Our engagement with all of our different partners has ensured that policy decisions resulting from the Indiana Behavioral Health Commission’s report are based in evidence, and emphasizes the value of team science in state-led research,” said Aaron Zych, MPH, project management specialist for WISE Indiana.

“One in five people in Indiana experience some sort of mental illness each year, but we know many people don’t get the treatment they need,” said Heather Taylor, PhD, MPH, assistant professor of health policy and management at the Indiana University Richard M. Fairbanks School of Public Health. “By sharing this report, we hope state leaders better understand the burden created by untreated mental illness and take action to prioritize interventions that improve access to and delivery of mental health services.”

|2022-10-07T13:45:12-04:00October 7th, 2022|Comments Off on Untreated mental illness is costing Indiana more than $4 billion per year

About the Author: CTSI Author

CTSI Author

Get Involved with Indiana CTSI