Stephen Sokoler, founder & CEO of Journey.
For years, employee assistance programs (EAPs) have been viewed as underutilized, reactive benefits—often tucked into HR policies without much attention. But in an era of rising healthcare costs and growing demand for mental health support, I think it’s time to reframe the role of an EAP.
My company specializes in EAPs, so I’ve seen firsthand how a high-quality, proactive EAP can be a financial and strategic buffer that can protect a company’s health plan and improve workforce productivity. In a cost-conscious corporate environment, mental health support is an investment in financial sustainability.
Cost Containment And Risk Mitigation
CFOs and benefits leaders are concerned with rising healthcare costs. What many don’t realize is that untreated mental health issues directly drive up claims spend.
Employees struggling with anxiety, depression or chronic stress don’t always seek therapy first. Instead, I’ve noticed they often visit their primary care doctor for headaches, digestive issues or fatigue—sometimes leading to unnecessary medical visits, diagnostic tests and prescriptions. In more severe cases, untreated mental health conditions can result in crisis situations like panic attacks or substance use emergencies, leading to costly ER visits.
A proactive approach acts as an early intervention system, helping employees get support before their issues escalate into expensive medical claims. When companies catch mental health concerns early, they can reduce both the direct and indirect costs associated with unmanaged stress and burnout.
Preventing Escalation To High-Cost Health Plan Utilization
Without accessible, proactive mental health resources, employees may progress to more intensive (and expensive) care. Behavioral health treatment, psychiatric hospitalizations and disability leave are all costly outcomes of untreated mental health conditions.
A robust EAP can serve as a pre-filter—helping employees receive the right level of support before they escalate into high-cost interventions. Instead of an employee going directly into an intensive outpatient program or seeking psychiatric care covered under the company’s health plan, an effective EAP can provide early counseling, digital tools and stress management techniques to stabilize and support the individual.
By reducing the reliance on intensive treatment, companies can help prevent long-term cost burdens while ensuring employees receive appropriate, scalable care.
The Mental Health-Chronic Condition Connection
Mental health doesn’t exist in isolation—it can be linked to chronic diseases like diabetes and hypertension. Stress, anxiety and depression can exacerbate these conditions, leading to increased medication use, more frequent doctor visits and higher hospitalization rates.
When companies integrate mental health support early, they can help prevent chronic conditions from worsening. My company found that employees who manage stress effectively are often more likely to maintain healthier lifestyles and avoid medical complications that drive up employer-sponsored healthcare costs.
Reducing Pharmacy And Medication Spend
One often-overlooked financial impact of mental health issues is pharmacy spend.
When employees don’t have access to counseling or stress management support, they may be more likely to be prescribed SSRIs, benzodiazepines and other medications through their health plan. While medications play a crucial role in mental health care, over-reliance on prescriptions without complementary therapy or behavioral interventions can lead to increased costs—and sometimes, long-term dependence.
Look for a proactive EAP that offers coaching, therapy and resilience-building techniques, as this can help reduce prescriptions, keeping pharmacy costs in check while ensuring employees receive well-rounded care.
Absenteeism And Productivity
Healthcare costs aren’t just about claims: Absenteeism, presenteeism and lost productivity have significant financial consequences.
Employees experiencing burnout, stress or depression may be more likely to take sick days, disengage at work and struggle with performance. According to the World Health Organization, depression and anxiety cost the global economy $1 trillion annually in lost productivity.
The Limitations And Challenges Of EAPs
Despite their benefits, traditional EAPs have limitations that can affect their effectiveness.
1. Low Utilization Rates
Many EAPs suffer from low engagement. Employees may be unaware of the resources available or perceive EAPs as only for crisis situations rather than ongoing support.
Employers can improve engagement by integrating EAP services directly into daily workflows and normalizing mental health conversations.
2. Limited Sessions And Scope
Some EAPs provide only a few sessions per employee, which may not be sufficient for individuals facing long-term challenges. In such cases, companies should consider supplementing EAPs with broader well-being initiatives, such as digital mental health tools, coaching programs or expanded therapy access.
3. Access And Stigma Issues
Employees may hesitate to use EAPs due to concerns about confidentiality or fear of workplace stigma. I’ve found that proactive communication from leadership, peer advocacy and digital support can help alleviate these concerns.
For organizations with diverse workforces, addressing these challenges often requires a more personalized approach—one that integrates proactive outreach, digital engagement and culturally competent mental health resources.
Discussing The Business Impact
For companies looking to reduce healthcare expenses, improve employee well-being and enhance productivity, I suggest you position EAPs as financial safeguards, not just an add-on benefit.
Here’s how to frame the conversation with leadership:
• “Think of an EAP as the first line of defense for your health plan.” A well-utilized EAP can reduce claims, pharmacy spend and high-cost care utilization.
• “An EAP isn’t just an employee benefit; it’s a financial risk management tool.” Addressing mental health proactively can help prevent additional medical expenses.
• “If employees don’t have easy, proactive access to mental health support, they may seek care elsewhere—at a higher cost to your health plan.”
The Bottom Line
Companies that invest in proactive mental health solutions can help improve employee well-being and protect their bottom line.
Through integrating a high-quality EAP as a core component of their cost-containment strategy, employers may be able to reduce claims, lower healthcare spend and create a more resilient workforce. I believe that the future of mental health benefits is about building a smarter, more financially sustainable approach to employee well-being.
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