Working on an ezine type post this morning, I was able to do some quick calculations on the total cost of psychological services in Medicare. Here’s a quick look.
| 2024 Projected Allowed Charges (Millions)¹ | 2024 Percent of Medicare Outlays² | 2024 Percent of Total Mandatory Outlays | |
| Clinical Psychologists | $717 | .08% | .017% |
| Clinical Social Workers | $801 | .09% | .02% |
| Psychiatry | $907 | .10% | .022% |
| Total | $2,425 | .28% | .059% |
| 2024 Total Medicare Outlays = $865 billion | |||
| 2024 Total Mandatory Outlays = $4.1 trillion | |||
Sources: ¹https://www.federalregister.gov/documents/2023/11/16/2023-24184/medicare-and-medicaid-programs-cy-2024-payment-policies-under-the-physician-fee-schedule-and-other; ²https://www.cbo.gov/publication/61182
So, bottom line is that the total projected spending for all three of these professions was .06% of all mandatory spending in 2024, less than .3% of all Medicare spending, and less than .02% of all mandatory spending for clinical psychologists.
Question: Was the ROI worth it in terms of human factors, and potential cost savings in other health care?