Hawaii Medicaid Study. According to a 3-year study of Medicaid patients and federally employed workers, total benefit costs were reduced by about one-third when brief focused mental health treatment was added to medical treatment. The number of outpatient physician visits, drug prescriptions, diagnostic procedures, emergency room visits and hospital days were the variables involved in the cost savings.

It works both ways. A large manufacturing company, with over 20,000 employees, reduced its mental health benefit between 1992 and 1995. During this period, employees who used mental health services showed a 37% increase in the use of medical benefits and an increase in the use of sick days. The money saved by reducing benefits was offset by the increase in the use of medical expenses and the cost of absenteeism.

A two year study of veterans showed patients who made 'excessive use' of the health care system reduced their use of medical services from 5.5 to 3.5 annual outpatient visits after receiving abbreviated mental health treatment. Control groups, who received no psychotherapy, continued to increase their use of the health care system. A 3 year study of 10,000 Aetna beneficiaries showed medical costs dropped progressively in the 36 months following introduction of mental health services. The group's health costs went from $242 per person in the year preceding the introduction of mental health benefits to $162 two years later.

Research of 20,000 Columbia Medical Plan participants (in Maryland) showed untreated mentally ill patients increased their medical utilization by 61% during a one-year period. The mentally ill who received psychological treatment increased their medical expenditures by only 11 %.

Elderly patients who received mental health services averaged 12 fewer hospital days per year than a comparison group who were hospitalized for the same reason but did not receive mental health care.

In 1989, Bell South adopted a mental health benefit encouraging employees to access care in the least restrictive setting, reducing inpatient services and saving $6 million in the three following years.

McDonnell Douglas has used a mental health benefit with no constraints since 1989. in the first year, this benefit led to a 50% decrease in psychiatric inpatient admission costs and a per capita mental health cost decline of 34 %.

Between 1989 and 1992, Champus, the health plan for military personnel increased spending for outpatient mental health services by $22 million and saved $200 million in reduced psychiatric hospitalization.

In one year, Chevron saw a 21% decrease in psychiatric hospital admission costs by letting the provider network cover intermediary services and encouraging outpatient care and treatment.

First National Bank of Chicago saved 30% in mental health and substance abuse costs over four years as a result of implementing a mental health benefit that expanded the range of services covered and reimbursed outpatient costs at 85%.

In 1987, National Cash Register encouraged employees to use a mental health that that emphasized early intervention, access to a full range of care, and treatment in the least restrictive setting. NCR saved close to $300,000 in the first year alone. Projected savings are close to $2 million.