ESTIMATING the COST of PREVENTIVE SERVICES
in Mental Health and Substance Abuse Under Managed Care

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).