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A Rand Corporation study showed that the impact of depression on day to day functioning is comparable to that of a chronic heart condition. Depression is responsible for more days in bed and more physical pain than hypertension, diabetes, and gastrointestinal problems.76
Examples from Employers77
The following facts regarding the scope of mental illness are important in order to fully understand its economic impact in the United States.
* Westinghouse: Prevalence rates for major depression were 17% for women and 9% for men.
* Pacific Bell: Depression accounted for 11% of all days lost from work during one year and resulted in half the total time lost due to mental health problems.
* Wells Fargo Bank: An employee survey at revealed that 30% to 35% of respondents were experiencing depressive symptoms. The incidence of clinical depression could be as high as 12% to15%.
See Figure 10 and Figure 11, on the next pages, Medical Costs and Short Term Disability Data On a Disease by Disease Basis of a Fortune 100 Firm.78
EMPLOYER CASE STUDY
A study of the medical and disability costs of depressive disorders was conducted at the First Chicago Corporation, examining data between 1989 to 1995. During this time, the First National Bank of Chicago was the eleventh largest bank in the United States, with over 15,000 employees worldwide. The study analyzed 12,400 employees, dependents, and retirees covered under the bank's self-insured medical plan. (As result of a merger in October 1998, First Chicago is now Bank One with approximately 100,000 employees. The information presented in this section was derived from pre-merger studies.)
The purpose of this study was to examine the economic costs of depressive disorders to First Chicago in terms of short-term disability rates, medical plan claims, and EAP services. Data analysis was made possible through the use of First Chicago's integrated health data management computer system.
According to First Chicago's Medical Director and EAP Directors, in the late 1980s and early 1990s, depression was taking an enormous toll on the company in terms of direct and indirect costs. Evidence included the following:79
* The incidence of depressive disorders continued to increase.
* In terms of absenteeism and cyclical absences, depressive disorders had a powerful impact on disability rates. Depressive disorders surpassed other common chronic medical conditions such as heart disease and low back pain in the average length of the disability period. Additionally, an employee with a diagnosed depression was significantly more likely to return to disability status within 1 year than an employee with a chronic medical condition such as heart disease or high blood pressure.
* Between 1989 and 1992, depression exhibited the highest rate of 12 month recidivism among a group of common chronic disorders. One in four
