More Mental Health Services Paid By Public

A report released Tuesday shows more mental health services are being paid by U.S., state and local government programs than by private insurance.

The Substance Abuse and Mental Health Services Administration said public sources paid for 63 percent of mental health spending in 2001, up from 57 percent in 1991. Public sources paid for 76 percent of substance abuse treatment in 2001, up from 62 percent in 1991.

Public spending for mental health and substance abuse services totaled $67.4 billion in 2001, while private spending — including insurance, out-of-pocket spending and charity care — was $36.3 billion.

The data are published in the online edition of Health Affairs.

The report said Medicaid is the largest single payer of mental health services, exceeding private insurance, Medicare, or other state and local spending. The entitlement program for the indigent paid 27 percent of mental health expenditures in 2001.