Employer Behavioral Health Plans Reduce Overall Costs

Employer Behavioral Health Plans Reduce Overall Costs

February 18, 2025

According to a recent study published in JAMA Network Open, employer-sponsored behavioral health programs provide measurable benefits, including cost savings, for employers and their workforce. The study found that an employer-sponsored behavioral health program led to a 47% increase in behavioral healthcare use while significantly reducing overall healthcare costs. Every $100 invested in the program resulted in $190 in medical claims cost savings—highlighting the financial advantages of integrating these programs into health plan options.

The study compared nearly 14,000 participants from seven employers split into two groups: one that accessed behavioral healthcare through the employer-sponsored program and a control group that received care, including behavioral healthcare, through a traditional health plan. By assessing medical and prescription claims incurred one year before the program’s launch through one year after launch, researchers identified significant cost reductions driven by improved access to care.  

One of the most impactful findings was that while behavioral health costs were higher for program participants, their physical health care costs were much lower than the control group. Even after accounting for the program’s costs, the results showed a net 13.5% reduction in medical claims expenses and a return on investment (ROI) of 1.9 times the program’s cost in the year following its launch. In addition, the savings were even more significant among participants with high-cost conditions such as hypertension and chronic pain, underscoring the link between behavioral and physical health.

These results highlight the role of employer-based behavioral health programs in addressing two major barriers to care—cost and time to treatment. Employers subsidized care and provided participants with a digital platform that made it easier to complete screenings, find care providers, schedule appointments within days rather than months, manage their medications, access educational resources, and attend treatment sessions. 

While quicker access to care was noted as a factor in the positive study outcomes, it is not the norm in the U.S., where only 21% of people with a behavioral health diagnosis receive care within a year. Speeding up the time from diagnosis to treatment allowed for early intervention, which helps prevent conditions from escalating to crisis levels, thereby reducing the need for expensive emergency room care or inpatient stays. 

As employers and health plans seek solutions to address employee behavioral health issues and control costs, these findings point to employer-sponsored behavioral health programs with faster access to care as a promising option. Treating behavioral health can have a significant positive impact on physical health, especially in the case of chronic health conditions, and greatly reduce the need for more expensive interventions.

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