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News
The US spends $174 billion a year on mental health and substance use disorder care — just 7% of total healthcare spending — despite the enormous societal toll these conditions take. A new JAMA Psychiatry study found mood and anxiety disorders drive the highest overall costs, while substance use disorders, schizophrenia, and bipolar disorder carry the steepest per-person price tags. Experts say spending remains consistently low relative to the true burden of mental illness.
The US spent roughly $174 billion annually on mental health and substance use disorder (SUD) care between 2021 and 2023 — accounting for just 7% of the nation's $2.5 trillion total healthcare bill, according to a new study published in JAMA Psychiatry. Researchers analyzed data from over 67,000 person-year observations in the Medical Expenditure Panel Survey, painting a detailed picture of where mental health dollars actually go.
Mood disorders ($74B) and anxiety disorders ($69B) topped the list for total aggregate spending, while SUDs, schizophrenia, and bipolar disorder were the costliest on a per-person basis. Ambulatory services made up the lion's share of spending ($107B), followed by medications ($36B), home healthcare ($20B), and inpatient care ($12B).
Why it matters: Despite being a leading driver of disability and societal burden, mental health care remains chronically underfunded. The study's authors argue that better treatment matching, more effective therapies, and reducing low-value care could help close the gap — without necessarily blowing up the budget.
