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Today, mental illness impacts 1 in 4 Americans. Most employers recognize that mental health conditions—ranging from depression and workplace anxiety to alcohol misuse and drug abuse—drive up costs while decreasing productivity.
However, many people assume these costs are solely around prescriptions or the per-employee-per-month (PEPM) expense of a wellbeing program. Here is a look at some of the hidden costs of mental illness for employers.
Poor employee mental health leads to high employer medical costs
- Behavioral health claims are responsible for a 20% increase in employer mental health spending.
- Mental health spend has increased twice as much as overall medical spending.
- The average annual health care cost for a person with major depression is $10,836.
- The annual incremental health care cost per depressed employee that also suffers from a chronic condition such as diabetes is $5,000.
Poor employee mental health leads to increased absenteeism
- A depressed employee's work performance is impaired an average of 20% of their time.
- Depressed employee miss 6 to 25 additional days of work per year.
- Employees with depressing lose 8% of work productivity on average.
Employee mental health affects turnover costs
- 9% of employees leave a job because of wellbeing-related concerns.
- Employees experiencing depression are two times more likely to leave a job than their non-depressed colleagues.
- Hiring a replacement due to turnover costs an average of 33% of the employee's salary.
Effective mental health care is often challenging to find
- 45% of adults who seek mental health care receive an incorrect mental illness diagnosis.
- It takes an average of 25 days before a person can see a psychiatrist.
- 78% of depressed adults still experienced serious mental distress after receiving treatment.
Mental health concerns affect healthy employees too
- 8.4 million adults provide unpaid (“informal”) assistance to individuals with mental health problems.
- 70% of employed informal caregivers had to reduce work hours, find a less demanding job, turn down a promotion or take a leave of absence / retire early.
How to think about mental health ROI
As you review mental health benefits options, here are a few questions to help you understand the true ROI of a solution:
- Is the solution clinically validated and evidence-based? It’s important to have clinical proof behind any solution designed for your employees who are struggling with real clinical issues.
- Does the solution have higher utilization than your current EAP? Many existing solutions use “vanity” metrics such as website visits to demonstrate engagement. Push your vendor to understand how they measure member engagement and satisfaction.
- Does the solution only offer one type of treatment, such as access to providers? Many vendors take a “one size fits all” approach to treatment. Employees may also not believe they need to see a provider right away. Choose a solution that offers a variety of treatments to fit the entire spectrum of mental illness.
Spring Health uses data to get each person the right treatment, from the start. We combine an intelligent data platform with a vetted provider network to eliminate all barriers to mental health. Our Precision Mental Healthcare approach is personalized, clinically validated, and financially sustainable. Request a demo to learn more about how Spring Health can support your team.