Health benefits managers are increasingly seeking innovative ways to provide behavioral health services to their members, a trend that operators and vendors should closely monitor. Behavioral health conditions such as depression, anxiety, addiction, and other mental health concerns remain some of the largest cost drivers in health care. At the same time, these conditions are a top concern for employees, making employee mental health benefits a central focus for insurers and employers when designing benefits packages.
According to a recent managed care survey by Credit Suisse, 29 percent of health benefits managers reported that depression was a major concern for their company, while another 20 percent identified mental health more broadly. A.J. Rice, managing director of equity research at Credit Suisse, emphasized that the cost of behavioral health challenges goes beyond direct care. “It’s employee inefficiency, lack of productivity, employees missing time from work,” Rice said. These indirect costs highlight why employee mental health benefits are critical not just for wellness, but for overall organizational performance.
Digital Solutions Expand Access to Behavioral Health
Access to behavioral health care remains a major challenge in the U.S., where roughly 130 million people live in regions with a shortage of mental health clinicians. Long wait times and limited availability leave many individuals without care, creating a need for digital alternatives.
Telehealth has become a cornerstone of addressing this gap. In 2022, more than 65 percent of benefits managers reported offering behavioral health services via telehealth, according to the Credit Suisse survey. Virtual options, including video therapy and phone-based consultations, reduce wait times and provide convenience, increasing engagement with employee mental health benefits. “People engage more readily virtually,” Rice noted, with some individuals even preferring phone-based support over in-person visits.
Point Solutions and the Evolution of Behavioral Health Care
Beyond telehealth, the behavioral health market now includes specialized digital point solutions that target specific needs, such as substance use disorders, pediatric behavioral health, eating disorders, and obsessive-compulsive disorder. Laura Veroneau, a partner at Optum Ventures, described this as a growing sector within behavioral health. “Not just one solution covers behavioral health, the way it might have been thought of historically,” she said.
These point solutions often incorporate engagement strategies such as gamification or personalized digital coaching, helping employees maintain consistent participation. Providing diverse access points ensures that employee mental health benefits are not only available but also adaptable to each individual’s needs.
Engagement, ROI, and Outcomes Drive Benefits Manager Decisions
With so many digital offerings on the market, benefits managers are more selective than ever. They prioritize engagement, measurable outcomes, return on investment, and affordability. Russell Glass, CEO of Headspace Health, emphasized that demand for high-quality mental health support remains strong, even as benefits leaders evaluate solutions more carefully.
Headspace Health, formed through the 2021 merger of Ginger and Headspace, provides a continuum of care for enterprise clients, serving over 3,500 partners, including major insurers like Cigna. Recently, the company partnered with Kaiser Permanente to offer Ginger’s emotional support coaching at no cost to members, available 24/7 via text. This approach enhances employee mental health benefits by offering accessible support without appointments or referrals.
Mergers and Acquisitions Shape the Digital Behavioral Health Market
Consolidation is reshaping the behavioral health market as companies seek to streamline vendors and offer comprehensive solutions. Headspace Health acquired Shine, an app focused on mental health for people of color, and wellness company Sayana. Lyra Health, another major player, acquired ICAS World, an employee assistance program, earlier this year.
These mergers help simplify management for benefits leaders, creating more cohesive employee mental health benefits packages while maintaining high-quality support. Consolidation also allows employees to navigate fewer systems, reducing barriers to accessing care.
Behavioral Health Benefits Remain a Priority Despite Economic Uncertainty
Even amid potential economic slowdowns, health benefits managers continue to invest in robust behavioral health resources. With unemployment rates near pre-pandemic lows, employers are focused on maintaining a competitive workforce by offering attractive employee mental health benefits.
Glass noted that employee expectations have shifted in the wake of the pandemic, emphasizing flexibility, psychological safety, and meaningful work. Companies that fail to meet these expectations risk higher turnover rates. “Today, employees expect more from their jobs,” Glass said. “When employees don’t feel like they are getting the things they value from a job, they are resigning in droves.”
Looking Ahead: Opportunities for Operators and Vendors
The increasing focus on behavioral health represents a significant opportunity for operators, providers, and technology vendors. Companies are actively seeking solutions that are accessible, effective, and engaging, making employee mental health benefits an essential aspect of competitive workplace offerings.
From telehealth platforms to specialized digital point solutions and integrated care pathways, the trend toward comprehensive, employee-centered behavioral health support is accelerating. Operators and vendors who align their offerings with benefits managers’ priorities—engagement, measurable outcomes, affordability, and ease of integration—are likely to see long-term success.
By embracing innovation and leveraging digital tools, employers can enhance employee mental health benefits, improve access, engagement, and outcomes, and help address the growing behavioral health challenges in today’s workforce.
