In the wake of unprecedented levels of medical and student debt, alongside an ongoing pandemic, it’s no surprise employee mental health is taking a nationwide dive.
The U.S. Census Bureau found that the number of Americans struggling with depression or anxiety-related symptoms has increased by 11% compared to past years. In fact, nearly 53 million Americans experienced mental illness in 2020, yet less than half received treatment, according to the National Alliance on Mental Illness.
For one in four people who reported having a mental illness, cost was the main barrier to seeking care, according to a study by management consulting company,
Read more:
“A lot of people don't have the right resources that enable them to even understand their benefits or what is available to them,” says Jeris Stueland, an expert associate partner and leader for the employer healthcare service line at McKinsey. “Employers shouldn’t assume anybody knows anything because everybody finds healthcare super confusing.”
Stueland has found that this especially holds true for lower-income employees, employees of color and LGBTQ employees, who may have less experience interacting with the healthcare system. Managers and HR should remind employees of what resources are available to them on a weekly basis, explains Stueland.
But the uncertainty surrounding benefits is just the tip of the iceberg when it comes to mental health care accessibility —McKinsey also reported that those with mental illness are 66% more likely to have debt across various categories, such as student loan, medical, credit card and auto loan debt. Meanwhile, 20% of those with mental illness felt they were not on track to meet short-term financial needs, such as rent, groceries and transportation. This is expected, since people who face day-to-day financial challenges are more likely to face a deterioration in mental health, according to insurance company Voya.
Read more:
Stueland views financial stress as a negative feedback loop — employees are stressed about their financial burdens, so they cannot afford mental healthcare and find themselves progressively worn down by their circumstances. Stueland believes employers should take some of that weight off their employees’ shoulders, and if possible, offer subsidies for childcare, transportation and even housing. Employers should also consider allotting grants that go towards student loan repayments.
“Employees may be trying to cover childcare, put food on the table, pay for housing and contribute to their benefits and retirement account,” Stueland says. “On their salary, it just may not add up, so employers can at least help employees with these chronic stressors and give them a chance to be more resilient when other things happen.”
Still, not all accessibility issues can be mitigated by employers. The healthcare system is especially daunting for many respondents, with McKinsey finding that those who have mental illness but have not sought treatment are 60% more likely to say that mental health services are not affordable. Their assumption is reasonable, considering that half of Americans have medical debt, with 57% owing at least $1,000, as reported by financial education company, Debt.com. Additionally, 60% of psychiatrists do not accept insurance and mental health treatment is reimbursed at a 24% lower rate than primary care, meaning out-of-pocket costs can be high, according to McKinsey.
Read more:
“Oftentimes, employer-sponsored health plans will have out-of-network coverage, but you will have to pay out of pocket until you’re reimbursed after a month or two, and you won’t be reimbursed 100%,” says Stueland. “That’s going to be prohibitive in a country where people do not have substantial savings.”
While not every employer can control this, Stueland suggests that self-insured providers add a diverse group of mental healthcare providers to their network so employees of various backgrounds can stay in-network. Beyond that, Stueland encourages employers to create an environment where employees feel comfortable discussing and accessing mental health services during work hours. This could mean giving employees a private space to have virtual appointments in the office or just allowing them to step away from work to see their provider during the weekday.
“It should be clear that taking care of your health is a company expectation,” Stueland says. “Nobody should wonder if people are looking at them funny for visiting a provider too often and making their health a priority.”
