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Large Employers See Increase in Mental Healthcare Needs of Workforce
Seventy-seven percent of large employers surveyed reported an increase in mental health-related needs for their workforce, and another 16% anticipate a similar surge in the future, according to a report published this month by the Business Group on Health.
The 77% of employers surveyed who reported an increase in workforce mental health needs is a significant surge from a year prior, when 44% of employers polled said they observed a rise in employee mental health concerns.
“Our survey found that in 2024 and for the near future, employers will be acutely focused on addressing employees’ mental health needs while ensuring access and lowering cost barriers,” said Ellen Kelsay, president and CEO of Business Group on Health, in a news release. “Companies will need to creatively and deftly navigate these and other challenges in the coming year, especially as they remain committed to providing high-quality health and well-being offerings while managing overall costs.”
Based in Washington, D.C., the Business Group on Health conducted a national survey of 152 large employers across various sectors between June 1 and July 18. The 152 companies cover more than 19 million people in the US. The survey also produced the following findings:
- While mental health-related concerns are rising sharply, cancer remained the most frequently cited driver of healthcare costs, with about half of employers listing it No. 1 and 86% ranking it within their top 3.
- Employers expressed a desire to focus on evaluating their partnerships and holding vendors accountable to improve on transparency of results, pricing, and contractual terms. Nearly half of employers surveyed said they will require vendors to report on health equity measures.
Perception of Telehealth’s Potential
Employers are now tempering expectations around the transformative potential of virtual healthcare services. In 2021, 85% of survey participants said they believe telehealth will have “a significant impact on how care is delivered in the future.” In 2023, that figure has declined to 64%. Employers cited the following concerns regarding virtual care:
- Lack of coordination between virtual and community-based providers creating a siloed care experience for employees (cited by 70% of survey participants);
- Quality of care (54%);
- Lack of integration between vendors (54%);
- Market oversaturation (43%);
- Unnecessary or duplicative services (32%);
- Investment in unproven virtual health solutions (19%); and
- Cost of virtual health solutions (14%).
Planning for 2024
Looking ahead, 86% of employers said they plan to collaborate with employee resource groups to promote available benefits and well-being initiatives to targeted groups, and 61% said they will require health plan and navigation partners to maintain directories of medical and mental healthcare providers. Meanwhile, 95% of large employers said they will implement at least 1 strategy to address health inequities by 2024.
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