Mental illness is a significant health issue that is affecting millions of people worldwide. It encompasses a range of conditions, such as depression, anxiety disorders, bipolar disorder, schizophrenia, among others. The impact of mental illness extends far beyond the individual, affecting families, communities, and societies as a whole.

While the human cost of mental illness is well-recognized, its economic burden is often overlooked or underestimated. The economic costs associated with mental health conditions come in various forms, ranging from direct healthcare expenses to indirect costs because of productivity slump and reduced quality of life. This is crucial for policymakers, healthcare providers and the society at large, as it provides insights into the financial implications and highlights the importance of effective health financing mechanisms.

Economic cost of mental illness: The financial impact of mental illness can be categorised into three kinds.

Direct costs: Direct costs refer to the expenses directly incurred on the treatment and management of mental illness. These costs include healthcare services, medication, hospitalization, outpatient care, therapy sessions, and specialized services such as rehabilitation and recovery programs. Mental health treatments often require long-term care and medication, resulting in substantial financial commitments.

Additionally, mental health services are not always readily accessible or affordable, exacerbating the economic burden of families. The direct costs of mental illness strain healthcare budgets and necessitate effective health financing strategies to ensure adequate funding for mental healthcare.

Indirect costs: Mental illness also imposes significant indirect costs on individuals and the economy. Indirect costs arise from productivity losses, reduced educational attainment, unemployment and increased disability claims. Productivity losses due to absenteeism, presenteeism (being present but not fully functioning), and reduced work performance contribute to economic burdens. People living with mental health conditions often face challenges in maintaining employment or pursuing educational opportunities due to the debilitating nature of their illnesses.

This places a strain on family members and caregivers, leading to loss of income as they prioritize caregiving responsibilities. The emotional and psychological toll on caregivers can further impact their own mental well-being. Consequently, these lead to lower incomes, decreased tax revenues, and increased dependence on healthcare programs, which can create a burden on the government.

Societal costs: Mental illness has far-reaching societal costs that extend to various sectors, including the criminal justice system and social welfare programs. Social welfare expenditures include disability benefits, social assistance programs, and more for individuals experiencing homelessness as a result of mental health challenges. This directly puts a cost on the healthcare system.

The broader societal and economic impacts directly emphasize the urgency of investing in mental health support systems.

Impact of health financing: Finances for healthcare are significantly impacted by the cost of mental illness. In order to fulfil the rising demand for treatments, public healthcare systems must provide enough resources and money. However, there is often a mismatch between the demand for and supply of mental health care due to scarce resources and financial restraints. This necessitates thoughtful acts that can genuinely change things.

Public health funding: Mental health services must be adequately funded and integrated into mainstream healthcare systems. This requires policymakers to prioritize mental health in resource allocation decisions, ensuring sufficient budgetary allocations for mental health programs, infrastructure, and human resources.

Adequate funding can enhance access to quality mental healthcare, reducing the burden on individuals and families. In India, while public healthcare is improving, thanks to myriad government schemes, there is still a need to implement the same for mental healthcare.

Access to health financing: Given the substantial economic burden of mental illness, there is a pressing need for comprehensive mental health policies that prioritize prevention, early intervention, and integrated care. This involves implementing policies that reduce financial barriers, such as providing insurance coverage for mental health treatments and medications. For this, health-tech platforms should be encouraged to drive innovations and offer affordable health financing solutions.

Expanding mental health coverage within public and private insurance schemes can make a significant impact on improving accessibility and early detection of mental health conditions as well as increasing affordability and reducing the financial strain on individuals seeking mental healthcare.

Focus on preventive healthcare: While preventive measures have traditionally focused on physical health, there is increasing recognition of the importance of preventive strategies for mental health. One key aspect of this is to raise public awareness and reduce stigma. Educational campaigns that emphasize mental health literacy and challenge misconceptions can help individuals recognize the importance of mental well-being and seek help when needed.

Implementing mental health promotion initiatives in educational or work settings, such as providing training for recognising signs of distress and offering support services can contribute to the overall well-being of individuals of all ages.

The governments should also promote this initiative. For example, in Germany, paid leaves for health traumas associated with mental illness such as depression are quite common. It is important to treat individuals going through rough patches with respect and compassion to help them heal. This helps prevent exacerbation and reduce associated costs of mental illness, thereby alleviating the economic burden on individuals and families.

The economic burden of mental illness is a significant concern that necessitates attention from policymakers, healthcare providers, and society. By acknowledging and addressing the economic implications of mental illness, a robust mental healthcare system can be built that supports the well-being of individuals and help them live happy and healthy lives.

(The writer is co-founder of Kenko Health)