SAMHSA’s Award-Winning Newsletter
January/February 2011, Volume 19, Number 1 

Behavioral Health Spending Down

In 2005, behavioral health spending accounted for 7.3 percent ($135 billion) of the $1.85 trillion spent on all health care services in the United States, according to a recent SAMHSA report.

Spending on psychiatric drugs grew by 5.6 percent from 2004 to 2005, down from the 27.3 percent growth from 1999 to 2000.

Spending on addiction medications is increasing but still remains relatively small. As a result of the introduction of new medications, spending on addiction medications has grown rapidly—from $10 million in 1992 to $141 million in 2005.

The full report, National Expenditures for Mental Health Services and Substance Abuse Treatment, 1986–2005, analyzes health care costs from 1986 to 2005 to determine patterns in expenditures for behavioral health services.

cover of National Expenditures for Mental Health Services and Substance Abuse Treatment, 1986–2005 - click to view report

“For the first time, SAMHSA is posting downloadable data files on these findings: behavioral health spending by major payers to major providers from 1986 to 2005,” said Rita Vandivort-Warren, M.S.W., a senior public health analyst in the Division of Services Improvement at SAMHSA. “These data should help researchers, policy analysts, and consumer and advocacy groups to explore their specific interests.”

Slow Growth in Spending

During the 20-year study period, both mental health and substance abuse spending grew more slowly than all other health spending: 4.8 percent annually for substance abuse, 6.9 percent annually for mental health, and 7.9 percent annually for all health care services.

The same pattern held in the most recent 2002 to 2005 period, in which spending for substance abuse grew slowest (5.0 percent), followed by mental health (6.4 percent), and all health (7.3 percent).

Private Insurance Versus Medicaid

The study found that private insurance spends about 5 percent on behavioral health treatment (mental health and substance abuse). Spending on behavioral health treatment comprised 4.8 percent of private health insurance expenditures in 2005 and grew by 7 percent from 2004 to 2005.

This estimate provides an important baseline for future evaluations on the impact of the Mental Health Parity and Addiction Equity Act and the Affordable Care Act.

In contrast, Medicaid behavioral health was responsible for 11.5 percent of total spending by Medicaid. Thus, the study indicates that the level of public spending on behavioral health issues may be related to lack of private insurance and that parity may address these problems.

Other Key Findings

Unlike overall health spending, the majority of behavioral health services are publicly funded.

In 2005, public payers accounted for 79 percent of spending on substance abuse treatment services and 58 percent of spending on mental health services. In contrast, public payers accounted for less than half (46 percent) of all-health spending.

Download the full report from SAMHSA’s website.

2005 Public to Private Spending: All Mental Health/Substance Abuse Versus All Health

Enlarge image

chart on 2005 Public to Private Spending: All Mental Health/Substance Abuse versus All Health - click to enlarge image

In 2005, behavioral health spending accounted for 7.3 percent ($135 billion) of the $1.85 trillion spent on all health care services in the United States. Of those total amounts, the two pie charts above illustrate the percentages of public spending versus private spending.

The full report, National Expenditures for Mental Health Services and Substance Abuse Treatment, 1986–2005, is available on the SAMHSA Store.

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  Cover Story & Related Articles  
Increasing Outreach, Feedback, and Virtual Communities

Increasing Outreach, Feedback, and Virtual Communities

SAMHSA has developed a “digital engagement” program with presences on major social media channels.


  From the Administrator  
Above All, SAMHSA Seeks To Improve Lives

Above All, SAMHSA Seeks To Improve Lives

SAMHSA Administrator Pamela S. Hyde, J.D., talks about SAMHSA’s newly revised document on the Strategic Initiatives. Read more.


  In the News  
President’s Budget

President’s Budget

The FY 2012 Budget requests $3.6 billion for SAMHSA. View the chart.

Oil Spill Update: Call 1-800-985-5990

Oil Spill Update: Call 1-800-985-5990

To support those affected, SAMHSA and the Ad Council created a new awareness campaign.


  Military Families  
Presidential Initiative

Presidential Initiative

A new directive establishes a coordinated Federal approach to supporting military families. View Resources.


  Prevention  
Prevention Day 2011

Prevention Day 2011

Prevention Day included games and fun for local students. Photo Gallery.


  National Expenditures  
Behavioral Health Spending Down

Behavioral Health Spending Down

In 2005, $1.8 trillion was spent on all U.S. health care services; behavioral health spending accounted for 7.3 percent.


  Suicide Prevention  
Marvel Comics’ Superheroes Help

Marvel Comics’ Superheroes Help

“Captain America” is giving a little help to save young lives. Read more on SAMHSA’s blog.

Suicidal Thoughts & Behaviors: Who’s at Risk?

Suicidal Thoughts & Behaviors: Who’s at Risk?

An estimated 8.4 million adults age 18 or older had serious thoughts of suicide last year.


  Treatment Admissions  
Dramatic Shifts State by State

Dramatic Shifts State by State

By region, treatment admissions show striking variations.

Trauma-Related Counseling

Trauma-Related Counseling

Mental health screenings can help identify clients who have experienced trauma.


  Recovery  
Months Away, But . . .

Months Away, But . . .

Things are happening on the Recovery Month website. View webcasts and more.


  Statistics & Data  
Jump in Number of Pharmaceutical-Related Emergencies

Jump in Number of Pharmaceutical-Related Emergencies

A 98.4-percent increase in ER visits is related to the misuse or abuse of pharmaceuticals.


  Visit the SAMHSA Store  

Free Publications at Your Fingertips

SAMHSA’s website includes the new SAMHSA Store for publications and other Agency products. Visit store.samhsa.gov.

SAMHSA Store Video Tour

View the story of the SAMHSA Store. Find out how keyword taxonomy helps your search.