August 2007

National Expenditures for Mental Health Services & Substance Abuse Treatment 1993-2003

Researchers from the federal Substance Abuse and Mental Health Services Administration analyzed health care costs from 1986 to 2003. Some key findings include:

• National expenditures for the treatment of mental health and substance abuse disorders in the United States equaled $121 billion in 2003, up from $70 billion in 1993.

• Public sources financed more than half of all spending for mental health treatment and more than two-thirds of substance abuse treatment.
   

• Consumer out-of-pocket spending increased between 1993 and 2003, from 4.3% to 10.1%, mostly due to the costs of prescription drugs.
   

• Mental health services and substance abuse treatment constituted 7.5% of all health care expenditures in 2003, down from 8.2% in 1993.

The authors suggest using their data as a springboard for further study into cause and effect of increases and decreases in the amount and types of spending and coverage. They note that further study could also help to address policy issues that would improve the quality and access of care for mental illness and substance abuse.