US Mental Health Care Costs Reached $174 Billion Annually
A study found that mental health and substance use disorders accounted for 7% of total US healthcare spending from 2021 to 2023.
Updated on Oct. 7, 2026 in Mental Health
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Annualized spending for mental health and substance use care in the United States totaled $174 billion between 2021 and 2023. This figure represented 7% of total national medical expenditures during the period.
Why it matters
The analysis highlights the significant financial burden of specific psychiatric conditions on the American healthcare system. These findings underscore the scale of resources dedicated to treating mental health compared to overall medical spending.
Mood disorders required $74 billion in aggregate costs, while anxiety and fear-related disorders totaled $69 billion. Ambulatory services made up $107 billion of the spending, followed by $36 billion for medications.
The players
JAMA Psychiatry
This is a monthly peer-reviewed medical journal published by the American Medical Association that focuses on psychiatry and mental health.
The details
Researchers utilized data from 67,532 person-year observations to calculate expenditures across office-based care, outpatient visits, hospital stays, and prescriptions. Substance use disorders, schizophrenia, and bipolar disorders recorded the highest mean per-person costs.
Timeline
The data collection period for the Medical Expenditure Panel Survey spanned from 2021 to 2023.
The findings were published in the journal JAMA Psychiatry on September 30, 2026.
The Big Picture
This study follows the established research patterns of the Medical Expenditure Panel Survey to quantify public health costs. By mapping these specific expenditures, the analysis updates the economic baseline previously established by the survey.
The study demonstrates that mean annual expenditures for treated persons average $2,473, though costs vary significantly by condition. Patients managing substance use, schizophrenia, or bipolar disorders face the highest per-person treatment costs.
The takeaway
Understanding the high concentration of costs in specific service areas like ambulatory care can help policymakers optimize resource allocation. Patients and families can use these findings to better understand the systemic economic impact of managing chronic psychiatric conditions.
Further reading
For additional context on national wellness trends, explore the Mental Health section.
Source note: This article includes information reported by Medscape.
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