November 17, 2025
Supporting Employee Well-Being: How Employers Can Strengthen Mental Health Benefits
As awareness of mental health continues to grow, so does the expectation for employers to support it meaningfully. Yet even with expanded access to behavioral health services, many employees still struggle to navigate their mental health benefits or don’t realize what’s available to them.
For employers, that represents both a challenge and an opportunity. A thoughtfully designed benefits strategy can reduce stigma, improve access to care, and drive measurable value through better employee engagement and lower long-term costs.
Why Mental Health Coverage Matters for Employers
The data is clear: mental health impacts everything from productivity to retention. A recent Gallup study shows that untreated mental health conditions cost U.S. employers nearly $47 billion in lost productivity each year. Meanwhile, employees who receive timely mental health care report higher job satisfaction, fewer absences, and improved overall performance.
In today’s labor market, offering strong mental health benefits isn’t just a wellness initiative, it’s a business strategy.
Understanding Coverage Requirements
Employers offering mental health benefits must comply with the Mental Health Parity and Addiction Equity Act (MHPAEA). This federal law requires that mental health and substance use disorder benefits be covered at the same level as medical and surgical benefits.
That means similar copays, deductibles, visit limits, and access to in-network providers. Ensuring parity not only protects compliance but also sends a powerful message about your organization’s commitment to whole-person health.
However, not all plans are required to include mental health coverage. Large group plans (50+ employees) can technically exclude it, though most choose to include behavioral health support because of its demonstrated impact on employee well-being and organizational culture.
Beyond Coverage: Designing for Real Access
Simply offering a benefit isn’t enough; employees need to know how to use it. Employers can improve access and utilization by:
- Integrating Employee Assistance Programs (EAPs): These provide confidential, no-cost counseling and referrals for employees and their families.
- Promoting teletherapy: Virtual visits can make care more accessible, especially for employees in rural areas or those hesitant to seek in-person support.
- Removing financial barriers: Employers might consider waiving copays for the first few therapy sessions or offering seed funding through an HSA or HRA.
- Educating employees year-round: Don’t wait for open enrollment. Regular reminders and real-life examples help normalize mental health care and boost engagement.
How Medical Management Enhances Mental Health Support
For self-funded employers, medical management programs offer an additional layer of support. Integrated case management allows nurses to identify and assist members who may be struggling with both physical and behavioral health needs.
At Nova, for example, care management teams collaborate across disciplines to ensure mental health isn’t siloed from overall health. This integrated approach helps prevent unnecessary emergency visits, improves adherence to treatment, and supports long-term recovery, while managing costs responsibly.
What to Do if Mental Health Coverage Is Limited
If your plan doesn’t include comprehensive mental health benefits, employers can still provide meaningful support through:
- Expanded EAP offerings or community resource partnerships
- Access to digital mental health tools or apps
- Training for managers to recognize and respond to signs of distress
- Communication campaigns that promote mental well-being and reduce stigma
Employers can also direct employees to trusted national resources such as:
- 988 Suicide and Crisis Lifeline
- SAMHSA Treatment Locator
- Mental Health America
- National Alliance on Mental Illness (NAMI)
The Employer’s Role in Changing the Conversation
Building a workplace culture that supports mental health goes beyond benefits. It starts with empathy and open communication. When leaders model vulnerability, provide flexibility, and show that it’s safe to seek help, employees respond with greater trust and engagement.
By ensuring that mental health benefits are accessible, well-communicated, and integrated into your overall health plan strategy, employers can create an environment where people, and performance, thrive.
For more details on incorporating mental health into your health plan and communicating benefits to employees, listen to these episodes of Nova’s Under the Coverage podcast: