BOX 9-1

Methodology for Cost Estimates

  1. Mental Health Service Costs

  1. Multiply Ringel and Sturm’s 1998 estimate of $11.7 billion by (73.7 + 29.45)/73.7 to expand age group to include ages 18-24 (they only included ages 0-17).

  2. Multiply by 2 to account for fact that their estimates do not account for full range of settings, as suggested by Costello, Copeland, and colleagues (2007).

  3. Inflate to 2007 dollars (multiply by 1.28), based on the Bureau of Labor Statistics’ consumer price index (see http://www.bls.gov/cpi/).

  4. Multiply by population growth between 1998 and 2007 for people under age 25 (1.07) = $45 billion.

  1. Health, Productivity, and Crime Costs

  1. Mental disorders: Multiply share of mental health and substance abuse– related DALYs incurred by 0-24 age group (0.355), times National Institute of Mental Health (2002) estimate ($102 billion for 1995—$185 billion less the portion of total costs attributable to health care since counted in part 1), times inflation adjustment from 1995 to 2007 dollars (1.37), times population growth between 1995 and 2007 for people under 25 years old (1.07) = $54 billion.

  2. Drug abuse: Multiply share of mental health and substance abuse–related DALYs incurred by 0-24 age group (0.355), times Office of National Drug Control Policy (2004) estimate ($165.1 billion for 2002—$180.9 billion less the $15.8 billion in health care costs since counted in part 1), times inflation adjustment from 2002 to 2007 dollars (1.15), times population growth between 2002 and 2007 for people under 25 years old (1.05) = $71 billion.

  3. Alcohol abuse: Multiply share of mental health and substance abuse–related DALYs incurred by 0-24 age group (0.355), times Harwood (2000) estimate ($158 billion for 1998—$185 billion less the portion of total costs attributable to health care since counted in part 1), times inflation adjustment from 1998 to 2007 dollars (1.27), times population growth between 1998 and 2007 for people under 25 years old (1.07) = $77 billion.

Total = $247 billion, which, divided by 104 million people ages 0-24, equals about $2,380 per young person.

individuals and their families)—outweigh the costs that would be incurred in a real-world environment. As one example of the complexity of measuring costs, a serious mental disorder in a parent or a child has obvious and measurable financial costs associated with treatment and lost productivity. However, the disorder also often profoundly affects the overall functioning of the family in psychosocial ways that are devastatingly costly to the



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