Depression - Costs

Europe

Depression is one of the most disabling diseases, and causes a significant burden both to the individual and to society. The World Health Organization (WHO) data suggests that depression causes 6% of the burden of all diseases in Europe in terms of disability adjusted life years (DALYs). When estimating the total cost of depression in Europe based on published epidemiologic and economic evidence (Sobocki et al. 2006) calculated the aggregated annual cost in Euro for 2004 as follows: In 28 countries with a population of 466 million, at least 21 million people were affected by depression. The total annual cost of depression in Europe was estimated at €118 billion in 2004, which corresponds to a cost of €253 per inhabitant per year. Direct costs alone totalled €42 billion per year, comprised of outpatient care (€22 billion), drug cost (€9 billion) and hospitalization (€10 billion). Indirect costs due to morbidity and mortality were estimated at €76 billion.

This makes depression the most costly brain disorder in Europe, accounting for 33% of the total cost spent on health care. The cost of depression corresponds to 1% of the total economy of Europe (GDP). Hence the cost of depression poses a significant economic burden to European society. One important way to stop this explosion in cost is through increased research efforts in the field. Moreover, better detection, prevention, treatment and patient management are imperatives to reduce the burden of depression and its costs.

USA

Depression costs US-employers more than $51 billion per year due to absenteeism and lost productivity, both while at work and days absent from work. These costs do not include high medical and pharmaceutical bills. Other societal results of depression include personal and financial costs to individuals, their families and their communities. Economic analyses of costs associated with depression in Australia shows that employees with depressive symptoms, not in treatment, are absent from work for 5.5 per cent of total working time which is 4.3 per cent more than their non-depressed counterparts. This equates to an annual wage loss of at least $1.5 billion due to absenteeism. Moreover, employees with depressive symptoms have reduced ability to function at their usual level of capacity while at work. This represents a productivity decrement $2.8 billion a year. In total this is a staggering $4.3 billion in lost productivity each year due to undiagnosed depression. When averaged across the USA’s workforce the annual cost of lost productivity per person with untreated depression symptoms is current > $10,000 per annum. Putting this in a context for employers’ consumption, it means that for each and every employee, depression is producing a loss of ~ $750 per annum (Australia). It is important to note that these productivity losses are an “at least value”, they do not include additional losses due to WorkCover or insurance claims, part-time or casual employees, staff attrition or critical incidents.