Pandemic Drives Up Mental Health Claims in Insurer's Report

Mental health insurance claims increased by 25% in 2020, and analysts expect higher volumes of such claims to continue even post-pandemic, according to a report published this week by Sun Life, an international financial services organization that provides insurance, wealth and asset management services.

The report is based on an analysis of claims data from 2017-20 for more than 45,000 members. Among its key findings:

• Overall spending on mental health claims increased nearly 25% year-over-year in 2020.
• Members with stop-loss (high-cost) claims related to mental health disorders increased by 21%.
• The average cost of a mental health claim per person in 2020 was about $80,000.

Sun Life representatives are scheduled to deliver a virtual presentation on their findings on Monday.

Citing data from a Kaiser Health study published in February, Sun Life noted in its report that 4 in 10 adults reported experiencing some form of anxiety or depression in 2020, roughly quadruple the number from the prior year. Sun Life’s data showed increases in both the frequency of mental health insurance claims in 2020 and the total spend on mental health treatment. Alcohol-related disorders, opioid-related disorders and depressive disorders ranked as the top 3 subcategories for mental health claims, and individuals with complex health conditions were found to have an increased likelihood of also having a mental health issue.

Kaiser’s data also showed that women with children were 10% more likely to report depression symptoms in 2020, and that the pandemic disproportionately impacted the mental health in communities of color. Essential workers were more likely than non-essential workers to report mental health conditions (42% vs. 30%), and the pandemic also fueled greater levels of emotional distress in healthcare workers.

“Mental health is health,” Jennifer Collier, RN, Sun Life’s senior vice president of stop-loss & health, said in a news release. “Often the symptoms and signs are harder to detect, even in the people we see or talk to every day. We encourage our clients to continue focusing on workplace mental health, which will foster positive impacts to their employees' overall health and well-being.”