90% ROI on Mental Health Benefits
A recent study published in JAMA Network Open highlights the financial benefits of employer-sponsored behavioral health programs, demonstrating that these programs can result in significant net medical costs savings. The study examined a cohort of 13 990 employees and dependents who were eligible for a behavioral health benefit provided through a digital platform. The program offered a comprehensive suite of services, including video and in-person psychotherapy, medication management, care navigation, and self-guided content, with fast and direct access to behavioral health specialists.
The study's primary finding was a substantial return on investment (ROI) for employers. For every $100 invested in the behavioral health program, there was a corresponding $190 reduction in medical claims costs. Over the course of 1 year, this amounted to a net savings of $1070 per participant, with program users experiencing a 29.6% gross reduction in medical spending compared with their matched nonuser counterparts. These savings were driven by a decrease in spending on physical health services, such as emergency department visits and hospital stays, despite an increase in behavioral health service utilization.
Participants in the program reported a 47% relative increase in the use of behavioral health care services, indicating improved access to timely, effective treatment. The program’s streamlined process for clinician selection and appointment scheduling likely contributed to this increase. Unlike many traditional health plans where behavioral health care utilization remains low due to structural and financial barriers, the employer-sponsored benefit provided subsidized, evidence-based care designed to reduce those obstacles.
The program's impact extended beyond behavioral health care itself. Reductions in medical spending were particularly notable among participants with high-cost medical conditions, including chronic pain, hypertension, and gastrointestinal disorders. These conditions are often exacerbated by stress, anxiety, and depression. By addressing these underlying behavioral health issues, the program helped mitigate complications and reduced the need for costly physical health interventions.
The findings are significant for health care payers and employers seeking strategies to contain rising health care costs. Untreated behavioral health disorders are associated with increased spending on chronic conditions such as cardiovascular disease, diabetes, and chronic pain. The study underscores the potential of targeted behavioral health interventions to lower overall medical expenditures by improving both mental and physical health outcomes. For employers, expanding access to such programs may not only enhance employee well-being but also serve as a cost-effective means of reducing medical claims.
“These findings suggest that providing subsidized access to high-quality, measurement-based behavioral health care may be an effective cost containment strategy, particularly in populations with high-cost medical conditions,” the researchers concluded.
Reference
Hawrilenko M, Smolka C, Ward E, et al. Return on investment of enhanced behavioral health services. JAMA Netw Open. 2025;8(2):e2457834. doi:10.1001/jamanetworkopen.2024.57834
