ESTIMATING COSTS OF MENTAL-HEALTH AND SUBSTANCE-ABUSE COVERAGE

The cost of expanding mental health and substance abuse treatment cove rage is a major impediment to reforming insurance coverage for these t ypes of conditions. The recent experience with national health care re form offers a case study in cost estimation for mental health and subs tance abuse coverage. The impact of managed care and the cost of expan ding coverage to currently uninsured persons introduced uncertainty in to predictions. This paper critically reviews that experience and draw s lessons for estimating future costs of policy initiatives.