In the past decade, mental health has emerged from the shadows to become a significant focus within the healthcare and Employee Benefits industry. As we look toward the rest of this year and into the next, the landscape of mental health coverage in health insurance looks much different than it did 10 years ago—presenting both challenges and innovative solutions.
Growing Need for Coverage
There has been an unprecedented rise in the recognition of mental health issues. Contributing factors include the global pandemic, economic uncertainty, and increasing day-to-day pressures—all of which continue to drive the rise in mental health conditions.
And this trend is backed by data, not just anecdotal evidence. Holmes Murphy’s population health report for our book of business shows an increase in both prevalence of mental health episodes of care as well as the cost per patient, which is up 14% in 2024 vs. 2022.
With rising rates of anxiety, depression, and other disorders, employers are identifying and implementing solutions inside and alongside their health insurance offerings.
Coverage Challenges
Despite progress in many areas, several challenges persist in providing adequate mental health coverage to all individuals in need of care.
Stigma and Awareness
Although awareness of mental health issues has improved—especially in our younger generations—stigma remains a significant barrier. Many people are hesitant to seek help due to fear of judgment, misunderstanding, and labeling, which leads to underreporting and underdiagnosis.
Access to Care
According to the 2025 Employer Health Care Strategy Survey, 79% of employers indicated that access to mental health services is one of their top three mental health priorities. Yet access to services remains a challenge, particularly in rural and underserved areas. There is also a shortage of mental health professionals, making it difficult for individuals to receive timely and appropriate care.
Cost Barriers
Mental health, similar to physical health, typically includes cost share as a part of the health insurance program. Copayments and other out-of-pocket expenses can deter individuals from seeking treatment.
Innovative Solutions
To address these challenges, the health insurance industry is introducing new approaches aimed at improving access and affordability.
- Reducing Cost Barriers: Solutions implemented within the health insurance contract include zero-dollar or limited copayment for mental health services and/or mental health medications. We have also seen instances of employers paying out-of-network when necessary.
- Telehealth for Mental Health: The expansion of telehealth services has revolutionized access to health care. Virtual options improve access, particularly for people in rural areas or individuals who are not comfortable visiting a therapist in person.
- Enhanced Workplace Programs: Employers increasingly understand the importance of supporting employee mental health. While Employee Assistance Programs (EAPs) have long played a role, today’s solutions enhance their offerings. New strategies include proactive mental health and wellness programs like guided meditation, music therapy, fitness sessions, sleepcasts, and behavioral health coaching.
Looking Ahead
The progress made in mental health coverage is promising. However, continued efforts are needed to overcome existing challenges and ensure that everyone has access to comprehensive and affordable mental health care.
At Holmes Murphy, we understand that mental health is a growing priority in the marketplace. That’s why we work closely with clients to understand areas of need, identify potential solutions, and implement programs that support your organization and employees. If you think we can help, please reach out. We’re ready to build a plan that brings meaningful solutions to your organization.
