The Economic Cost of Mental Illness

By Chris Vaaler, Policy Associate, May 20, 2011 at 3:30 pm

The Minnesota legislature is currently proposing to cut state grants to mental health services as a part of their cuts only approach to balancing the budget. While the conserative controlled legislature believes that this is the fiscally responsible way to going about balancing the budget, the reality is that cutting mental health services will end up costing the state more money in the long run.

The Adult Mental Health Grant is currently slated for a $13.5 million dollar reduction. The Adult Mental Health Grant funds community-based services that help prevent people from using more costly inpatient and residential treatment. This includes community support programs, drop-in centers, and residential treatments. In addition, the adult mental health crisis grant is being cut in half. This grant funds mental health crisis services which are a far less costly alternative to the emergency room. In some extreme cases, those with untreated mental health conditions could end up costing the state more money by potentially putting more pressure on law enforcement, the courts and jails.

The Children’s Mental Health Screening Grant is also slated for a $3.8 million dollar reduction. This grant pays county governments after they have screened children who are in the juvenile justice system. This allows these children to be directed to the correct mental health specialist so that they can receive appropriate therapy. This is a particularly important group to screen as 70% of these children have some sort of serious mental health problem. With appropriate treatment, these children can go on to lead productive lives.

Unfortunately it seems the legislature believes that mental health benefits are a non-essential healthcare benefit and something that doesn’t affect the greater society as a whole. The reality of the matter is that when people don’t get treated for mental illness not only do they suffer but society as a whole suffers as well.

Posted in Health Care | Related Topics: Children's Health  Mental Health  Budget Deficit