This article uses a 4-pronged statistical approach to examine the impact of
a mental health came-out at a major employer. To examine net financial imp
act of the came-out, the authors perform a pre-post, multivariate regressio
n analysis of changes in costs. Using a random-effects model, the authors e
xplore the ultimate financial impact of the came-out for patients and for t
he firm. Using a multinomial logistic regression, they examine differing pr
ogram effects by intensity of use. A fixed-effects negative binomial regres
sion models the episodic nature of outpatient care, controlling for patient
-specific unobserved characteristics that influence health care utilization
. The came-out slightly reduced overall mental health costs and utilization
while expanding entry-level access to routine services. At the same time,
the specific carve-out shifted financial burdens from the firm onto high-ut
ilization patients. Therefore, this came-out appears poorly suited to the c
are of individuals experiencing severe and debilitating psychiatric disorde
rs.