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- Title
Managed Mental Health Care Issues and Strategies.
- Authors
Weiner, Robin B.; Siegel, Debra
- Abstract
Employer costs for mental health and substance abuse treatment are increasing more rapidly than for any other segment of health care. This article examines the scope of the problem of escalating mental health and substance abuse costs, the reasons for it, the current state of mental health practice, cost containment alternatives and recommendations for employers. Employers face both direct and indirect costs due to mental health and substance abuse problems. Direct costs are defined more easily and can account for 20–25% of an employer's health care costs. Indirect costs are those that affect company efficiency and may double or even triple the total costs associated with mental health and substance abuse. Employers have several options for structuring a cost containment strategy for mental health and substance abuse coverage, such as restrictive benefit designs, utilization management, an employee assistance program (EAP), carving out all mental health benefits and/or contracting with a specialty provider network on either a fully insured self-insured basis. These options can be used independently but are often more effective in combination. It is important that employers not overreact and implement programs that can have a negative impact on their workforce and total claim costs.
- Subjects
MEDICAL care costs; EMPLOYER-sponsored health insurance; MENTAL health; MEDICAL care; HEALTH insurance; EMPLOYEE benefits; COMPENSATION management
- Publication
Benefits Quarterly, 1989, Vol 5, Issue 3, p21
- ISSN
8756-1263
- Publication type
Article