Mental Health Inequities to Drive $477.5 Billion in Preventable Costs in 2024

According to a study conducted by Deloitte, The U.S. will spend an estimated $477.5 billion in “avoidable and unnecessary” expenses related to mental health inequities in 2024. By 2040, this expenditure is expected to reach $1.3 T. 

The Role of Mental Health Inequities

Mental health inequities refer to the unequal access to mental health services and treatment among different populations, particularly those who are marginalized or underserved. These inequities disproportionately impact racial and ethnic minorities, low-income communities, and those living in rural areas, resulting in higher rates of untreated mental health conditions, reduced productivity, and increased healthcare costs.

According to the World Health Organization (WHO), “Health equity is achieved when everyone can attain their full potential for health and well-being.” More and more companies are starting to recognize that health equity, in general, often starts in the workplace.

For benefits brokers, this presents both a challenge and an opportunity. As companies increasingly recognize the importance of employee well-being, brokers can play a critical role in guiding clients toward solutions that address these disparities.

Financial Impact on Employers and Employees

Mental health inequities don’t just affect healthcare costs; they also have a direct impact on workplace productivity. Untreated mental health conditions can lead to absenteeism and higher turnover rates, all of which are expensive for employers.

The National Safety Council found that "Each mentally distressed worker costs an employer over $4,700 a year in extra days of work missed.” Even further than that, each mentally distressed worker costs employers "$2,800 more in health care services per year" than other workers. 

Businesses bear the brunt of these preventable costs, with productivity losses also accounting for a significant portion of the $477.5 billion in avoidable expenses.

Employers who fail to address mental health disparities within their workforce risk not only financial losses but also a reduction in employee morale and engagement. For benefits brokers, this highlights the importance of offering comprehensive mental health solutions as part of employee benefits packages.

What Benefits Brokers Can Do

Brokers have a unique opportunity to help employers design benefits packages that help close the gap in mental health care. Here are a few ways brokers can take action:

1. Promote Access to Mental Health Services
   Many employees, particularly those in underserved populations, face barriers when seeking mental health support. Brokers can help by offering plans that provide comprehensive mental health coverage, including virtual care options, mental health hotlines, and employee assistance programs (EAPs). Expanding access to telehealth and digital mental health resources can help reach employees in rural areas or those who may have trouble accessing traditional in-person care. 

On a smaller scale, brokers can also help companies provide access to easy-to-use wellness apps that can help employees improve their sleep and eating habits, which often directly impact mental health. 

1. Advocate for Mental Health Parity
   Ensuring that mental health services are covered equally to physical health services is critical to reducing inequities. Brokers can advocate for mental health parity in the plans they recommend, ensuring that employees have access to necessary treatments without excessive costs or limitations. By prioritizing mental health parity, brokers can drive better outcomes for employees and employers alike.
   
   
2. Educate Employers on the Importance of Inclusive Benefits
   Educating clients on the importance of offering inclusive benefits is another key step brokers can take. This includes ensuring that mental health services are accessible to all employees, regardless of their background or financial situation. Culturally competent care, for example, can help employees from diverse backgrounds feel more comfortable seeking mental health support. Brokers can also do their part by seeking more culturally informed mental health and well-being resources they can provide to their clients, who are serving an increasingly diverse workforce. 
   
   
3. Highlight the ROI of Mental Health Investments
   Brokers can further their case by highlighting the return on investment (ROI) that employers can see from investing in comprehensive mental health benefits. Studies show that every $1 spent on mental health treatment can lead to a $4 return in improved productivity and reduced absenteeism. 

By framing mental health benefits as an investment rather than a cost, brokers can help employers understand the long-term financial and cultural advantages of addressing mental health inequities in the workplace.

Additional Resources: 

• Brokers’ Corner Podcast—watch and subscribe to the Brokers’ Corner podcast, which dives into the topics that affect your agency and industry and identifies strategies so you can protect and grow your book of business 
• BerniePortal Brokers’ Council—a council of benefits brokers from across the country that advises BerniePortal on industry concerns, trends, and the ways technology can best support their agency and employer groups 
• BerniePortal for Brokers—leveraging technology to increase your agency valuation and support your employer groups is easier than ever with BerniePortal’s software solution, built for brokers by brokers