The Cost Equation of Poor Mental and Physical Health

Today | 4 min read

Key Takeaways

Mental health and physical health are closely connected, with conditions like depression, anxiety and chronic stress increasing the risk of serious chronic diseases.
Untreated mental health conditions can worsen physical illnesses, delay recovery and make it harder to maintain healthy habits and follow treatment plans.
Research shows regular mental healthcare can reduce emergency visits, hospitalizations and overall medical spending while improving long-term health outcomes.
Investing in mental well-being through treatment, prevention and self-care supports whole-person health and may help lower healthcare costs over time.

When we talk about mental health, we think of emotional well-being, stress management and quality of life, but mental health affects your physical health more than you might think. Maintaining a healthy mind can reduce your risk of costly physical health problems and chronic conditions over time.

Depression, anxiety and chronic stress don't just affect how you feel emotionally – they can influence nearly every major system in the body, increasing the risk of chronic disease, worsening existing chronic conditions and leading to more doctor visits, emergency care and hospitalizations. Research increasingly suggests that investing in mental healthcare early and consistently may also help lower overall healthcare costs later.

How are mental health and physical health connected?

The connection between mental and physical health runs deep. Mental health conditions can contribute to unhealthy behaviors such as poor sleep, physical inactivity, smoking and unhealthy eating habits, according to the American Psychological Association.

Those behaviors, in turn, increase the risk of conditions like heart disease, diabetes and obesity. Then there’s the inverse of this relationship: living with chronic physical illness can increase the likelihood of developing depression or anxiety.

Untreated mental health conditions have also been linked to poorer recovery from illness and surgery, through increased pain perception and greater difficulty managing chronic diseases. People experiencing depression are also less likely to follow treatment plans or maintain healthy lifestyle habits that prevent future illnesses, according to the Mental Health Foundation.

Mental health treatment can lower medical costs

Beyond improving overall health, studies and statistics say receiving regular mental healthcare can save you money in the long run, by reducing overall medical spending.

Recent analysis from Evernorth examined health claims from more than 200,000 people who were newly diagnosed with behavioral health conditions. Researchers found that individuals who received outpatient behavioral health treatment experienced up to $2,565 less in combined medical and pharmacy costs over 15 months compared to those who received no treatment. Over 27 months, the savings grew to as much as $3,321 per person. Treatment was also associated with fewer emergency room visits and inpatient hospitalizations.

Another recent study published in Psychiatric Services analyzed adults with chronic physical conditions such as cardiovascular disease, diabetes, arthritis, asthma and cancer. Researchers found that patients who received mental health services had a $1,146 smaller increase in annual healthcare spending than those who did not receive mental healthcare. The greatest savings occurred among people who received both psychotherapy and medication when appropriate, reducing overall healthcare expenditures by approximately $2,690 per person.

These findings suggest that treating mental health conditions may reduce the need for additional medical services by helping people better manage both their emotional and physical health.

The Center for Trauma-Informed Policy and Practice notes that untreated mental health conditions often contribute to higher long-term spending through increased emergency care, reliance on Supplemental Security Income and Social Security Disability programs, lost productivity and worsening chronic disease. Community-based prevention programs, early screening and easier access to behavioral health services can help reduce these downstream costs before they escalate.

Blue Cross can help you manage your whole person health

At Blue Cross Blue Shield of Michigan, our behavioral health network is growing. We’ve had a 47% increase in behavioral health providers to the Blue Cross network over the past two years. Additionally, our Collaborative Care model has reduced patient healthcare costs.

One study found that Collaborative Care implementation was associated with significant reductions in mental health hospitalizations, leading to substantial cost savings of about $1.70 for every dollar spent for implementation, among research participants. Another pathway trial showed a savings of more than $3,400 on total medical spend for patients with diabetes who received optimal care for depression.

We are also adding to our growing list of self-management tools and well-being resources, which are designed to help you improve your lifestyle, regulate your emotions and gain new perspectives on life.

Eating a healthy diet, getting regular exercise and good sleep and receiving preventive medical care are all important investments in your long-term health. Taking care of your mental health belongs on that list, as well.

Visit bcbsm.com to learn more and go to bcbsm.mibluedaily.com/affordability to learn about the solutions we are working on to address healthcare affordability.

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