Milliman Updates Projections of Economic Impact of Integrated Care

Date: 

04/26/2018

Milliman recently published Potential Economic Impact of Integrated Medical-Behavioral Healthcare: Updated Projections for 2017 [PDF, 519 KB]. This analysis strengthens the evidence base for integrated care by projecting the potential healthcare cost savings of successful, effective integrated medical and behavioral healthcare programs.

The report aims to educate payers, providers, employers, and others about the high healthcare costs of individuals with co-occurring behavioral health and chronic medical conditions. On average, medical costs are two to three times higher among those with comorbid behavioral health conditions than those without. The report estimates that there is a total annual value opportunity of $406 billion across all insurers (commercial, Medicare, and Medicaid) in the United States.

This report also calculates the potential impact of successful integrated care on these healthcare costs. It estimates that 9 to 17 percent of these additional costs could be saved through the effective integration of behavioral and medical healthcare, or approximately $38 billion to $68 billion annually.

National Integration Academy Council (NIAC) member Stephen Melek was the primary author on this report.