Tag Archives: Michael Halford

Milliman analysis of depression costs published in Contingencies

Stephen Melek and Michael Halford’s research paper “Measuring the cost of undiagnosed depression” appeared in the July/August 2012 issue of Contingencies.

Despite the high cost and prevalence of depression, it is often either undiagnosed or not diagnosed in a timely manner, and diagnosis does not always lead to treatment. While the costs of depression after the diagnosis of the condition have been widely studied, literature on the healthcare costs and absence-from-work costs during the period between initial disease onset and subsequent diagnosis and treatment is not as robust.

New research estimates the excess healthcare costs and absence-from-work costs during the two-year period prior to the initial diagnosis of depression. This research indicates that the total excess healthcare costs and absence-from-work costs for persons with undiagnosed depression over the two-year period leading up to the depression diagnosis/treatment is approximately $3,386 per undiagnosed depressed individual (in 2009 dollars). The report includes a discussion of what these findings mean for employers and insurers.

Download and read the article here.

Measuring the cost of undiagnosed depression

Despite the high cost and prevalence of depression, it is often either undiagnosed or not diagnosed in a timely manner, and diagnosis does not always lead to treatment. While the costs of depression after the diagnosis of the condition have been widely studied, literature on the healthcare costs and absence-from-work costs during the period between initial disease onset and subsequent diagnosis and treatment is not as robust.

The purpose of this research is to estimate the excess healthcare costs and absence-from-work costs during the two-year period prior to the initial diagnosis of depression. We estimate that the total excess healthcare costs and absence-from-work costs for persons with undiagnosed depression over the two-year period leading up to the depression diagnosis/treatment is approximately $3,386 per undiagnosed depressed individual (in 2009 dollars).

To see the full results, including data sources, study methodology, and a discussion of what these findings mean for employers and insurers, click here.

The impact of depression treatment persistence on total healthcare costs

Depression is a prevalent and costly disorder. Existing research has shown that many patients suffering from behavioral health conditions, including depression, receive inadequate or no treatment for these disorders. Inadequate treatment often occurs when patients discontinue their prescribed courses of treatment.

The purpose of this research report is to attempt to quantify the impact of depression treatment persistence on post-treatment healthcare costs. Is persistent treatment associated with future healthcare cost savings? Do patients who receive more depression treatment or continue treatment have lower total healthcare cost growth post-treatment than those who received less treatment or discontinued treatment? We conducted a study from a large national medical claims database and compared the relative change in total healthcare costs from the pre-treatment period to the post-treatment period by cohort.

Our results suggest that there is a relationship between persistent treatment for depression and future healthcare cost trend reductions for certain treatment paths and patient cohorts. We conclude with a discussion of the results and of suggestions for future research on this topic.

Read the full report here.