OBJECTIVE: The purpose of this retrospective, multivariate analysis is to examine how medical conditions and demographic characteristics affect the cost of treating individuals diagnosed with anxiety. METHODS: Data from MarketScan Databases® were used to identify individuals with new episodes of anxiety. Multivariate analysis was used with the dependent variable being the log of total medical costs. This analysis controlled for demographic characteristics, medical comorbidities, type of anxiety, and prior resource utilization. A smearing estimate is used to calculate the total medical costs for all anxiety patients (AAP), GAD, Panic Disorder (PD) and PTSD. RESULTS: Results indicate that the total medical costs for AAP is $6,474.72, GAD $4,025.86, PD $3,772.71, and PTSD $6,231.24. The multivariate model indicates that controlling for demographics and other disease states, GAD, PD, and PTSD result respectively in a 42%, 37%, and 77% increase in the total medical costs associate with AAP (p<0.0001). The incremental impact of depression, other anxiety disorders, and prior mental health diagnoses on the total medical costs were 38%, 37%, and 30% respectively (p<0.0001). CONCLUSION: Individuals with the highest costs, and therefore the greatest need for intervention, are anxious patients with depression, other common anxiety diagnoses, and comorbid medical conditions.