The cost of treating or caring for someone with schizophrenia can be high. While the healthcare system and government take on some of these costs, some must be taken on directly. Schizophrenia has major financial effects on both people with the condition and caregivers.1-3
How much does schizophrenia cost?
The Schizophrenia and Psychosis Action Alliance (S&PAA) released a large report in 2020 about the costs of care for schizophrenia. They determined that the average cost to care for a single person with schizophrenia each year in the United States is $92,000. This equates to about $3.8 million over their lifetime (after age 25).1
The estimated total cost of caring for everyone with schizophrenia in the United States per year is $280 billion. But another report published in 2022 by a different team of researchers suggested this number could be as high as $340 billion per year.1,2
These numbers are different based on estimates each team used. Examples are the exact number of people with schizophrenia and their unemployment rate. Regardless of their differences, both estimates are much higher than those made in previous years.1,2
As a comparison, the cost to care for cancer is expected to reach $240 billion per year by 2030. This is less than both estimates for schizophrenia. Schizophrenia costs may be closer to diabetes costs, which are about $327 billion per year.4
Some of the biggest contributors to schizophrenia costs are direct healthcare costs like doctor’s appointments and medication, caregiver-related costs, and costs related to unemployment.1
Direct costs of schizophrenia
The direct costs of schizophrenia stem from resources used to treat a person day to day. These resources may include:1
- Drugs
- Doctor’s appointments
- Hospital stays
- Community programs
It is worth noting that health insurance covers many of these costs. The total direct cost of caring for people with schizophrenia in the United States was more than $62 billion in 2020, according to the S&PAA. Disability benefits, like Social Security payments, made up only a small portion of this total (about $5 billion).1
The majority of this money was spent on direct healthcare and housing support. Experts estimate that as many as 1 in 5 people who are experiencing homelessness have schizophrenia. This may be due to a combination of expensive healthcare and inability to work, making it hard to find affordable housing. It also may be due to a lack of either a long-term caregiver or the ability to live independently.1
Indirect costs of schizophrenia
The indirect costs of schizophrenia are not as obvious. These costs include things like effects on caregivers, missed work, and quality of life changes. Based on S&PAA estimates from 2020, annual indirect costs are almost double the amount of direct costs, at about $115 billion.1,3
The estimated cost of caregiver time and effort to take care of their loved one made up more than half of this total. Lack of employment and reduced quality of life made up about $77 billion of the total cost.1,3
The employment rate for people with schizophrenia living alone is more than 30 percent. This may be higher than some people expect. But it is much lower than the general employment rate for people without schizophrenia (over 60 percent).1,3
The S&PAA estimates that each year a person is unemployed, they miss out on an average of $39,000. If they are employed but are missing work or not performing the best they can, the amount lost per year is around $12,000. Missing out on this amount of money can make a big difference when trying to pay for housing, healthcare, childcare, and more.1,3
Financial impact on caregivers
The S&PAA also put out a special report on caregivers. They found that more than half of all caregivers had missed work or had less time to engage in activities since taking on their caregiving role. Nearly 40 percent said they had to cut back on hours at work. About 1 in 5 said they had to take a leave of absence from work or switch jobs for better hours. All of these changes to employment can have a big impact on finances.3
On top of these employment changes, caregivers may also spend a lot of money each month on supplies for their loved one. The amount they spend on food, transportation, clothing, and medication, among other expenses, may be as high as $2,000 a month.3
Ways to cut back on personal healthcare costs
There are some ways to cut back on your personal healthcare costs. Try the options below that apply to you:5
- Ask your doctor about switching to generic drugs.
- Order prescription drugs in bulk and through the mail (like a 90-day supply mailed to your home).
- Ask case managers in your healthcare clinic about financial resources and support with housing or transportation.
- Take all treatments as prescribed so that new health complications do not arise.
- Get routine screenings or checkups on time to catch any new issues early.
- Ask a social worker or your insurance provider for help understanding your insurance benefits.
- Create an emergency action plan that includes doctors, clinics, and emergency rooms covered by your insurance.
- Open a healthcare savings account (HSA) or flexible spending account (FSA) if you or your loved one is employed to help cover some healthcare costs.
- Contact your doctor’s office or hospital directly when you receive a bill you cannot pay, and ask for support or repayment options.
Life with schizophrenia can be expensive. This is true for people with the condition, their caregivers, and the national healthcare system. If you are struggling to pay your medical bills, reach out to your healthcare team. They can point you in the right direction to get help.