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ESTIMATING the COST of PREVENTIVE SERVICES
in Mental Health and Substance Abuse Under Managed Care
Table 1: The Relative Values Assumed For Each of the Four Cost Scenarios
| Scenario |
|---|
| Cost Drivers | Most Expensive | Intermediate High | Intermediate Low | Least Expensive |
| | Primarily Public* | Many Public, Some Commercial | Many Enrollees Commercial, Some public | Covered in the Plan Primarily Commercial |
| Prevalence of Target Condition | Very High | High | Low | Very Low |
| Participation Rate | Very High | High | Low | Very Low |
| Time Period per Intervention | Very Long | Long | Short | Very Short |
| Intensity (Service Units per Intervention) | Very High | High | Low | Very Low |
| Staffing Pattern | Very Many Staff | Many Staff | Few Staff | Very Few Staff |
| Staff Salaries and Fringe Benefits | Highest | High | Low | Lowest |
| Startup, Fixed, and Variable Expenses | Highest | High | Low | Lowest |
| Administrative Overhead and Profit | 10% | 11% | 12% | 13% |
*Public enrollees means persons whose health care coverage is financed through public sector funds (e.g., Medicaid).
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