Mental health help may soon evaporate
Majority of employers are planning to reduce extra coverage post-pandemic, according to a new study
After a difficult 18 months, American workers are utilizing mental health resources at record rates, but a new study suggests a majority of employers are planning to reduce that extra coverage in the months ahead.
According to a recent study conducted by Forrester Consulting and Modern Health, 89% of C-suite and HR leaders acknowledge the importance of providing employees with mental health support, but 60% intend to revert to their pre-pandemic mental health strategy. Furthermore, 80% of C-suite leaders and 73% of HR leaders believe that employees expect too much mental health support from their employers.
“The thing we found concerning is that a lot of C-suite executives were considering rolling back mental health benefits,” says Myra Altman, vice president of clinical strategy and research at Modern Health. “Some executives are thinking that it’s a short-term trend, that the pandemic will end and people’s mental health [needs] will go back to baseline.”
Altman warns against that approach, arguing that even pre-pandemic norms were failing to meet the mental health needs of employees, and that pandemic-related stress, anxiety, burnout, depression and trauma won’t go away anytime soon.
“What we’re seeing in the data ... [is] that we’re not likely to see a decrease in mental health needs immediately post-pandemic,” she says. “We all want this to be over, we all want to go back to normal, but we have to acknowledge there is no going back to pre-pandemic times; the way we work and live has changed.”
Temporary measures created unsustainable costs
When the pandemic began, many employers sought to support their staff with additional mental health resources, but those resources were often considered a temporary solution to a temporary problem. What few considered — or worked into their budgets — was the costs of a long-term mental health crisis.
“Overall employer health care spending is itself a problem in our country, because it continues to go up faster than inflation, and at some point it’s unsustainable,” explains Jeris Stueland, expert associate partner at McKinsey & Co., who leads their employer health care service line.
Stueland, however, believes employers aren’t necessarily looking to take away mental health coverage. Instead, many are in the process of reevaluating the emergency measures they put in place to support their staff through the worst of the pandemic, with the goal of transitioning toward a more sustainable long-term solution.
“They are looking to ensure that the coverage is tailored to their needs, and it’s sustainable,” she says.
The ROI of mental health resources
Despite the ballooning costs, employers who invest in mental health resources typically see a return on that investment in employee retention, recruitment, morale and productivity. Furthermore, supporting mental health can actually reduce physical health care costs.
According to a study conducted by the Centers for Disease Control and Prevention (CDC), the cost of treatment for those suffering with both a mental and physical condition can be two or three times as expensive as treating a physical ailment alone. “People with physical health problems also often have mental health problems, and when you treat them together, they’ll need less pain management or will need fewer days in the hospital,” Stueland says.
As a result, cutting mental health resources could ultimately push costs elsewhere. “The return on investment is pretty significant for employers who acknowledge mental health and well-being, and provide benefits for that. So, not providing [those benefits] could certainly impact your overall business,” says Elissa Jessup, an HR knowledge adviser at the Society of Human Resource Management (SHRM). “That could negatively impact not only employee retention, but overall productivity and the bottom line.”
Jessup points to a 2016 study conducted by the World Health Organization, which found that for every $1 employers invested in scaled-up treatment of common mental disorders, there was a return of $4 in improved health and productivity.
Technology can improve access while reducing costs
Recent months have seen significant strides in innovation within the mental health industry, as the pandemic forced providers to consider new ways to deliver their services. Such technologies, when used effectively, allow employers to extract greater value from every dollar they spend on mental health resources.
“Technology has fueled the ability to get those resources out,” says Sandra Kuhn, partner and national leader for behavioral health consulting at Mercer, a health care benefits provider. “The pressures on the system around access have been helped by technology, so now you don’t need to drive to the provider’s office; you can do a video session, which allows for more convenience and more appointments to occur.”
Ending the stigma
While the pandemic experience itself has resulted in a greater need for mental health resources, it has helped reduce the stigma surrounding the topic. The simple fact that more people are openly talking about mental health will inspire some to pursue the help they avoided in the past.
As a result, Kuhn believes that providing those mental health resources has become a baseline expectation. “In a new-hire situation, people are asking, ‘What kind of mental health benefits do you offer?’ and we’ve never seen or heard that, or thought that would be the case, but it’s now something people look for.”