Cigna: Direct costs of depression in the workplace are tip of the iceberg

That's why employers have a huge stake in promoting treatment for depression, according to Keith Dixon, PhD and president of CIGNA Behavioral Health. Dixon spoke about depression in the workplace recently at the Picower Institute for Learning and Memory "On Depression" symposium at Massachusetts Institute for Technology, the first in the Open Mind series sponsored by CIGNA. Neuroscientists and other experts gathered to discuss research and methods to improve treatment protocols for depression.

"We need to convince company CEOs that the treatment of depression is good business strategy, and that begins by documenting the value of depression treatment beyond what exists today in academic and scientific journals," Dixon said.

In the private sector, Dixon noted, depressed employees use, on average, more than $4000 per year in medical services versus less than $1000 per year used by employees without depression, making depression a driving force in healthcare costs. At the same time, employers bear the many forms of indirect costs of depression when depression isn't treated, Dixon said.

"While direct treatment costs should concern us, the indirect costs of untreated depression are a more serious issue. These indirect costs show up as absenteeism, poor productivity, flawed decision-making, accidents, turnover, failed projects, faulty products, poor customer service, poor teamwork, and a big issue - inappropriate and wasteful use of the medical care system," Dixon said. The indirect costs of depression are estimated by the U.S. Surgeon General to be $80 billion annually.

"Depression is a huge drag on industrial productivity. Companies in our economy now need to compete globally, and the direct and indirect costs of depression are serious threats to our economic security in a vastly altered competitive landscape," Dixon remarked.

Dixon noted that while developing new medical technologies based on the scientific discoveries of the Picower Institute is exciting work, it is only half the challenge. "The other half involves rationalizing the cost and benefits of new solutions and assuring their distribution in a way that most benefits individuals and the companies that will be paying for them," Dixon said.

"The employer is no longer passive in our healthcare system, but is driving fundamental change. Healthcare has simply become too expensive - and health has become too important to productivity - for the employer to take a back seat," Dixon said. "At the same time, consumers are also becoming more engaged in their own healthcare, wanting to both achieve better health and reduce costs. Employers are increasingly turning to health coaching programs as a way to help consumers do both."

As an example, Dixon pointed to CIGNA's new depression management program as one workplace benefit that will promote treatment for depression. The CIGNA Well Aware Depression Management program will be available January 1, 2006, and, the company says, merges CIGNA's expertise in behavioral health with pharmacy and medical management to more readily identify members with depression and get them appropriate care.

Dixon explained that when people are depressed and see a primary care doctor - with an office visit that lasts, on average, 8 minutes - adequate time may not be given to discussing depression. When an antidepressant is prescribed, people often don't take their medication as prescribed, which means people don't get better, and their medical and pharmacy benefits are being wasted, he said. Through CIGNA's new integrated depression program, when someone has an antidepressant prescription, he or she will be called by a behavioral expert who will ask if the medication is being taken and if other help, such as therapy, is needed in combination with the medication.

"This new program enables us to provide employers with an employee benefit that will generate more proactive engagement with people who may need help for depression," Dixon said. This article was prepared by FDA Law Weekly editors from staff and other reports. Copyright 2005, FDA Law Weekly via LawRx.com.

To see more of the NewsRx.com, or to subscribe, go to http://www.newsrx.com.

This news story is not produced by the American Psychological Association and does not necessarily represent the opinions of the association.

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Cigna: Direct costs of depression in the workplace are tip of the iceberg