Moody’s Investors Service says medical conditions related to behavioural health – both mental health and substance abuse – are widespread and growing in the United States. They have also been exacerbated by the pandemic. It shows that average annual medical costs for those with behavioural health conditions are 3.5 times higher than those without such conditions.
Behavioural health “is an important driver of overall U.S. medical costs, which totalled $4.1-trillion in 2021 and have been steadily rising in recent years,” say authors of the report, Industry focus on behavioral and mental health will help control medical costs.
“U.S. health insurers’ response to date includes acquiring behavioural health providers, expanding telehealth and increasing integration of mental health services into the value-based framework,” says Moody’s vice president, Dean Ungar. “Companies that can better treat mental and behavioural issues will have an advantage over those that fail to improve in this area.”
Citing numerous studies, the report states that attention to mental health gives companies a long-term competitive advantage as behavioural and mental health issues are widespread and take a high economic toll.
Between 2010 and 2018, Moody’s says the overall economic cost of a major depressive disorder increased 37.9 per cent. “Data indicates that mental health issues were further exacerbated by the pandemic,” they write.
“Effectively incorporating behavioural health into overall health insurance programs has long been difficult for the U.S. health insurance industry,” they add. “Medical and behavioural health operations have traditionally been separate despite abundant evidence that there is value in integrating them.”
The report goes on to look at acquisitions and efforts made to break down the two silos. “Specialized behavioural health firms have shown that targeted (mental health) services can improve outcomes for patients.” They add that acquisitions of specialist firms are one potential way to gain an advantage.