Mental health has emerged as one of the most pressing and costly issues in today’s healthcare environment. In recent years, it has become one of the fastest-growing areas of employer healthcare spending. Industry reports show that behavioral health costs are rising at twice the rate of overall medical spending and now account for nearly 20% of total healthcare expenses for many employers.
This surge is driven by a sharp increase in diagnoses of anxiety, depression, substance use disorders, and adolescent behavioral issues, trends accelerated by the pandemic. Coupled with provider shortages and greater reliance on outpatient and virtual therapy, these factors are placing unprecedented cost pressure on employer-sponsored plans.
Mental Health: More Than a Wellness Benefit
Mental health conditions, though often less visible than physical illnesses, carry a significant and sometimes greater financial impact. For individuals managing chronic conditions such as diabetes or heart disease, the presence of a behavioral health issue can double the cost of care. Untreated mental health concerns also lead to higher rates of absenteeism, presenteeism, and lost productivity, costing employers billions annually.
When looking at claims data, the cost of outpatient behavioral health care often matches or exceeds that of many common surgical procedures or chronic disease treatments. The takeaway is clear: mental health isn’t just a wellness perk; it’s a major healthcare cost driver. It requires the same level of strategy, investment, and oversight as any other high-impact area of benefits planning.
How BSI Helps Employers Manage Mental Health Costs
- Telemedicine for Adults and Teens: BSI supports the implementation of tele-mental health services for adults and teens (ages 13+), expanding access to care and easing provider shortages. Virtual therapy consults often come at a lower cost than in-person visits, helping reduce plan spend while meeting growing demand. Members can access whenever they need.
- Expanded EAP (Employee Assistance Program) Offerings: BSI helps employers assess and enhance their EAP programs, transforming them from reactive crisis tools into proactive wellness resources. Modernized EAPs can include free, short-term therapy, financial and legal counseling, and digital well-being tools, delivering value to employees without adding cost to the medical plan.
- Strategic Carrier Negotiations: Through carrier collaboration and strategic negotiation, BSI helps clients achieve better behavioral health outcomes by improving network adequacy, expanding therapy session limits, and integrating behavioral health with primary care. We also assist in addressing inequities in reimbursement rates and access to specialists.
- Removal of Cost-Sharing Barriers: Eliminating or reducing co-pays and deductibles for mental health services can increase early engagement and prevent costlier care down the line. BSI works with employers to explore benefit designs that remove financial barriers to therapy, psychiatry, and counseling, improving utilization and outcomes.
The Bottom Line
Mental health is no longer a temporary crisis; it’s an evolving challenge. The pressures of modern life, from the constant stream of global news to the pervasive influence of social media, are taking a continuous toll on emotional well-being. These ongoing stressors are contributing to a steady rise in mental health diagnoses and service utilization across all age groups. Many employers are now reporting double-digit year-over-year increases in behavioral health claims, with virtual and outpatient therapy driving much of the growth.
This trend isn’t slowing down, and neither should your strategy. With the right mix of telehealth solutions, expanded EAP offerings, strategic partnerships, and benefit designs that lower barriers to care, BSI helps employers proactively manage both the human and financial dimensions of mental health. If your organization is seeing rising utilization or costs, now is the time to act. BSI is here to help you develop a plan that prioritizes mental health and enhances support, empowering your employees to be their best selves.