Background. This paper summarises the methods and sources of data used
to estimate costs of affective disorders and presents the results. Me
thod. A timing model employing regression analysis was developed to es
timate morbidity costs. This model measures the lifetime effect on cur
rent income of individuals with affective disorders, taking into accou
nt the timing of onset and the duration of these disorders. Results. A
ffective disorders imposed an estimated US$20.8 billion burden in 1985
and US$30.4 billion in 1990 in the US. Affective disorders represent
21% of the costs of all mental illnesses. Direct treatment costs compr
ised 58.4% of the total in 1985; morbidity costs, 8.1%; mortality cost
s, the present value of future earnings lost due to premature mortalit
y, 28.9%, based on a 6% discount rate; and other related costs, includ
ing the cost of crime, lost productivity due to incarceration, and car
egiver services, 4.6%. Private sources account for 49% of the total di
rect expenditures for treatment of persons with affective disorders; s
tate and local funds, 26%; and federal funds, 25%. Conclusion. In ligh
t of the high burden of affective disorders on societal resources, mor
e attention should be directed at comprehensive, research-based strate
gies to reduce the prevalence of these disorders in the United States.