Mental Health Care Cost U.S. $174 Billion Annually
New research shows mental health and substance use care made up 7% of total U.S. medical spending from 2021 to 2023.
Updated on Oct. 7, 2026 in Mental Health
Live Poll
Should the United States increase its total share of healthcare spending dedicated to mental health?
A study published September 30, 2026, analyzed U.S. healthcare data from 2021 to 2023, finding that mental health and substance use services totaled $174 billion in annual expenditures. This accounted for 7% of the nation's total $2.5 trillion annual medical spending.
Why it matters
Understanding these spending patterns highlights the substantial financial burden associated with mood and anxiety disorders. These figures provide essential context for how the healthcare system allocates resources toward specialized psychiatric and substance use care.
Researchers analyzed 67,532 person-year observations from the 2021-2023 Medical Expenditure Panel Survey to calculate aggregate costs. Mood disorders cost $74 billion annually, while anxiety and fear-related disorders cost $69 billion.
The players
JAMA Psychiatry
A peer-reviewed medical journal that publishes original research on mental health and psychiatric treatment advancements.
The details
The analysis aggregated costs across various care settings, including office-based visits, outpatient centers, hospital inpatient stays, prescription medications, and home health services. While ambulatory services represented the largest share at $107 billion, substance use disorders, schizophrenia, and bipolar disorders incurred the highest average costs per treated individual. These figures underscore the higher intensity of resources required for managing chronic, complex psychiatric conditions compared to other behavioral health issues.
Timeline
Data were collected via the Medical Expenditure Panel Survey between 2021 and 2023.
The study findings were published in JAMA Psychiatry on September 30, 2026.
Health Landscape
This research utilizes the Medical Expenditure Panel Survey to quantify the economic impact of behavioral health, providing a benchmark for future cost-of-care comparisons. By delineating spending by condition, the study helps characterize the current U.S. burden of chronic mental illness.
Understanding the cost structure of mental health care can help you navigate discussions with your insurance provider regarding coverage for chronic conditions. If you are managing a mood or anxiety disorder, talk to your doctor about which treatment settings are most cost-effective and clinically appropriate for your needs.
The takeaway
Mental health and substance use services represent a significant portion of national healthcare spending, with complex disorders like schizophrenia and bipolar disorder requiring the most intensive resources. Use these insights to have an informed conversation with your physician about long-term care plans and management strategies.
Further reading
For more information on the evolving delivery of care, visit our Mental Health section.
Live Poll
Should the United States increase its total share of healthcare spending dedicated to mental health?
