Seventy-seven percent of large employers reported an increase in workforce mental health needs in a recent survey by Business Group on Health. That’s an increase of 33% from a year ago, when 44% of employers saw an increase in employee mental health concerns.
The survey included 152 large employers, covering more than 19 million workers in the United States, and was conducted June 1 to July 18.
The companies cited mental health challenges as the “top area of significant prolonged impact resulting from the pandemic.”
“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,” Business Group on Health President and CEO Ellen Kelsay said Tuesday in a statement.
Responding employers said they plan to increase access to mental health services by providing more options for support and lowering cost barriers to care.
“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,” Kelsay said.
Pharmacy services
But participating employers also said that pharmacy costs concern them. According to the report, 92% of the companies said that they are “concerned” or “very concerned” about high-cost drugs in the pipeline, and 91% said they are concerned or very concerned about pharmacy cost trends overall.
“Those concerns appear to be well-founded, as employers experienced an increase in the median percentage of healthcare dollars spent on pharmacy, from 21% in 2021 to 24% in 2022,” the report noted. “Various pharmacy management strategies, such as implementing a transparent pharmacy benefit manager (PBM) and plan design changes to address costly medications and treatments, are planned by employers for 2024.”
Cancer concerns
Half of the employers participating in the survey cited cancer as a primary driver of healthcare costs, and 86% said that it is among their top three concerns related to employee healthcare.
“Last year, cancer overtook musculoskeletal conditions as the top driver of large companies’ healthcare costs, for the first time,” according to the report.
Respondents indicated that they plan to address this concern by focusing on advanced screening measures and maintaining 100% coverage for recommended prevention and screening services.
