The rising cost of mental illness

From a Mark et al. (2026) paper published in Health Affairs last week: …from 2000 through 2021, mental health and SUD nominal spending grew from $40.9 billion to $139.6 billion. Mental health and SUD accounted for 4.5 percent of all medical services spending in 2000 and 5.5 percent in 2021. Real per capita mental health and SUD spending grew…

Variation in State Health Care Expenditures

How have medical expenditures varied over time and across states? That is the question being asked by Johnson et al. (2022) in a recent Health Affairs paper. The authors use State Health Expenditure Accounts data between 1999-2014 and then extrapolate these trends forward with a regression-based approach to predict State spending through 2019. Using this…

Longitudinal Modelling of Healthcare Expenditures: Challenges and Solutions

Previous analyses–such as Basu and Manning 2009–have addressed the problem of mass of health care expenditures around $0. In typical economic analyses, we assume that the dependent variable is normally distributed. In the case of health care expenditures, however, a large number of people have $0 expenditures (i.e., healthy individuals). Further, among sick individuals that…