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.
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.
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.
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:
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.
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.