Milliman Research Report

August 19, 2020

Study Reveals Individuals with Behavioral Health Conditions in Addition to
Physical Conditions Drive High Total Healthcare Costs

Small Portion Spent on Behavioral Treatment, Vast Majority Spent on Physical Treatment

Report by: Stoddard Davenport, MPH/T.J. Gray, FSA, MAAA/Steve Melek, FSA, MAAA


  • 21 million commercially insured lives (2017 data)
  • People with co-morbid behavioral health and physical health conditions drive high costs
  • 5.7% of patients with co-morbid conditions account for 44% of high cost spend at annual average cost of >$43K
  • 1/2 of those patients had annual behavioral health spend at less than $95
  • 25% had annual behavioral health spending between $68 and $502


Two-tiered system is costly & COVID-19 will drive up costs

Must improve access to effective and affordable in-network behavioral healthcare

Expansion of the collaborative care model is needed now

Tele-behavioral health is improving access, must sustain momentum

To read the full report, click here.

To view the Press Release, click here.