How Social Isolation Drives $6,000 in Excess Costs Per Member Annually

Loneliness has emerged as one of the most pressing public health crises of our time. The U.S. Surgeon General declared it an “epidemic of disconnection” in 2023, linking chronic loneliness to higher rates of depression, anxiety, cardiovascular disease, dementia and premature mortality [1]. For health plans and employers, social isolation drives behavioral and physical health costs, increasing total medical spend by an estimated $6,000 per isolated member annually [2].

This article examines the clinical and economic burden of loneliness, its impact on care engagement and how NovaOne’s integrated digital and community-based model helps health plans address social isolation as a core determinant of behavioral health.

Loneliness is not simply an emotional state. It is a measurable health determinant.

According to the National Institute on Aging, loneliness triggers physiological stress responses that increase inflammation, disrupt sleep and impair immune function [3]. The CDC reports that chronic loneliness raises the risk of premature death by 26 percent which is comparable to smoking 15 cigarettes per day [4].

Social isolation disproportionately affects:

• Older adults and people with chronic illnesses
• Members with depression, anxiety or substance use disorders
• Remote or hybrid workers with limited social connection
• Young adults experiencing digital overexposure without meaningful contact

In behavioral health, loneliness exacerbates existing conditions and impedes recovery. Depression relapse, medication non-adherence and treatment dropout are significantly more common among socially isolated individuals [5].

Economic Impact for Health Plans
The financial burden of loneliness extends beyond mental health. Lonely members are more likely to use emergency services, experience hospital readmissions and require long-term care. A Health Affairs (2023) study estimated that social isolation adds $400 billion annually to the U.S. healthcare system [6].

For employers, the indirect costs include:

• Decreased productivity and presenteeism
• Higher turnover and disability claims
• Lower engagement in wellness and preventive programs

Milliman’s 2024 data show that members flagged for social isolation have 2.3 times higher behavioral health costs and 1.8 times higher medical costs compared to socially connected peers [7].

Evidence-Based Interventions
A growing body of research supports interventions that strengthen connection and belonging.

• Social Prescribing Programs – Link members to community groups and volunteer activities to reduce loneliness scores and improve wellbeing [8].
• Digital Peer Communities – Provide online support groups and moderated forums that improve engagement for chronic conditions and behavioral health recovery.
• Behavioral Activation Therapy – Use structured interventions to help members re-engage with social and rewarding activities.
• Integrated Screening – Incorporate loneliness questions into annual wellness visits for early detection and timely navigation.
• Employer Connection Programs – Offer peer mentoring, community volunteer events and employee network groups to increase belonging and improve retention.

NovaOne’s Approach
NovaOne recognizes loneliness as a behavioral health risk factor and a cost driver. Through NovaOne’s Digital Front Door, members complete validated mental health risk assessments. Members identified at risk are connected to NovaOne’s ecosystem of clinical and non-clinical supports, including:

• Licensed therapists specializing in social anxiety and depression
• Peer support groups and digital communities
• Community-centered programs addressing isolation, mobility and caregiver burden

The NovaOne platform integrates behavioral, physical and social data. Loneliness is not a peripheral issue. It is a clinical and economic imperative. By addressing social isolation together with behavioral and physical health needs, health plans can improve outcomes, reduce medical spend and strengthen member wellbeing. NovaOne helps health plans operationalize that vision by delivering connected care for a disconnected world.

Ready to tackle loneliness and improve member engagement?
Explore how NovaOne’s digital and community-centered programs can reduce costs and deliver meaningful results.

Sources: [1] U.S. Surgeon General Advisory on the Epidemic of Loneliness, [2] McKinsey Health Institute. The Cost of Social Isolation, [3] National Institute on Aging. Health Impacts of Loneliness, [4] Centers for Disease Control and Prevention. Social Isolation and Mortality Risk, [5] JAMA Psychiatry. Loneliness and Behavioral Health Outcomes, [6] Health Affairs. The Economic Burden of Social Isolation