Do Employee Benefits Cover Mental Health?

Let’s be honest. Mental health in the workplace is a growing concern — and it is easy to see why. With artificial intelligence and automation reshaping the professional landscape, engaging with employees has become more important than before. 

While many Canadian companies offer health insurance, they often miss the mark when it comes to supporting employee mental health. This, in turn, affects both the employee and employer.  

• Roughly 70% of Canadian employees say mental health issues negatively impact their productivity. 
• More than 43% of employees report feeling stressed or tense during their workday 
• Mental illness is one of the main reasons why employees take extended time off work. 

If as an employer, you are wondering how you can help, the answer is simple: by including mental health cover in your group health insurance package. 

By paying for part of the treatment, mental health cover allows your workers to get quality treatment without looking over the shoulder for funds. At the same time, it helps improve employee engagement and productivity.

How do mental health issues impact employees? 

500,000 Canadians miss work every week due to mental illness, according to the Canadian Psychological Association. The same report states that roughly 38% of employees took time off work in the past five years due to mental health problems, such as anxiety, depression, and stress. 

In addition to missing work, mental health issues affect employees’ creativity and productivity. Employees struggling with mental health disorders spend roughly 23% more time to complete creative tasks than those in good mental health. 

Poor mental health affects personal happiness too. Feeling down or stressed can make life less enjoyable.

What’s more, mood changes can also affect your loved ones. When a person is struggling with a mental health disorder, it pretty much touches every part of their life. Sometimes, symptoms of a mental illness even manifest as physical problems, such as stomach pain, headaches, back pain, or other unexplained aches and pains. 

Despite the severe consequences a mental illness has on the overall wellbeing, many adults don’t get the treatment they need. One of the main reasons for this is the high cost of treatment. This is where an employer-sponsored benefits package can step in. It can help employees seek timely intervention without worrying about the costs. 

Benefits of investing in employee mental health

Mental health benefits offer value to both the employee and employer. Here’s how:  

Promoting employee well-being

• Timely access to treatment: Access to counseling sessions, therapy sessions, and wellness programs enables employees to effectively manage anxiety, stress, and various mental health concerns. 
• Reduced absenteeism: Better management of mental health issues means employees will be less likely to miss work due to them. 
• Peace of mind: Employees know they will be able to afford the cost of psychotherapy or counseling should they need it. 
• Improved job satisfaction: Employers that offer employee health and wellness programs tend to have happier and more satisfied employees. 
• Improved work-life balance: A robust workplace mental health program fosters a healthy work-life balance, reduces burnout, and increases overall happiness. 
• Better workplace culture: Employees are more likely to work together in a supportive environment.

Increased workplace productivity 

• Lower turnover rates: Employee retention is a big challenge for many employees. High turnover disrupts operations and increases recruitment and training costs. A comprehensive health benefits program is a cost-effective way to attract and retain talent. 
• Improved efficiency: Investing in wellness initiatives is a time-tested way to improve job satisfaction. Happy and satisfied employees, in turn, tend to be more productive.
• Better teamwork: Employees with sound mental health help improve workplace harmony and create a more collaborative  atmosphere. 

How can implementing a workplace mental health program reduce the financial burden of mental illness on employees?

On average, Canadian employers offer mental health cover of $750 per year. This sum typically covers the cost of 4-7 sessions with a trained, licensed therapist, depending on where you live, who you consult, and the length of per session. A generous workplace wellness program can significantly alleviate the financial strain of mental illness. 

Here’s an example: 

Olivia, a senior web designer at a mid-sized Ontario IT firm, has recently been experiencing persistent, excessive worry without apparent cause. She is finding it increasingly difficult to keep up with her past performance and so decided to see a mental health specialist. Her psychiatrist told her she has clinical anxiety and recommended Cognitive Behavioral Therapy (CBT) as treatment.

Olivia’s employer provides a health benefits package that includes annual mental health coverage of $800. This sum fully covers Olivia’s first five sessions, but as she went along, she realized she would need more than that to make noticeable improvement. 

Should Olivia opt for one therapy session a month, she would incur an additional out-of-pocket expense of $1,120 annually. If she chooses to take two sessions a month, her personal expenditure would rise to $3,040 per year. Even though Olivia’s group mental health benefits plan does not eliminate her treatment expenses entirely, it considerably reduces them. 

What are the different ways in which Canadian employers offer mental health support?

Employee benefits packages in Canada often include various mental health support options. The following are some common mental health-related benefits offered by Canadian employers to their workforce:

1. Employee and Family Assistance Program (EFAP)

EFAPs provide access to professionals and counseling services for various mental health issues, including anxiety, depression, and stress. Support is also available for a range of other personal issues, including bereavement, domestic violence, relationship problems, financial worries, substance abuse, and workplace conflict.

Main features of an EFAP are: 

• Confidential Support: Support and professional advice offered is strictly confidential. 
• Short-term counseling: Short-term counseling helps employees address their immediate concerns.
• Referrals: If long-term support is needed, the EFAP can refer to external resources. 

2. Coverage for psychotherapy

Since psychological therapies can help treat most psychological disorders, providing cover for them as part of your group health insurance makes a lot of sense. 

Some key services worth considering are: 

• Sessions with psychiatrists, therapists, and counselors 
• Live digital sessions
• Medication adherence support
• Evidence-based drug coverage
• Physical therapy (such as acupuncture, naturotherapy, and massage therapy)

3. Wellness benefits

Group health plans often include wellness benefits like mindfulness training, stress and corporate mental wellbeing workshops. Some employers also choose to set up a wellness spending account for their staff, which can cover eligible expenses. 

Eligible expenses vary depending on the plan, but some of the typical inclusions are meditation workshops, yoga, movement therapy, and gym memberships. 

4. De-addiction/rehabilitation benefits

The Canadian Medical Association classifies addiction as a chronic yet manageable brain disease. Consequently, several insurance carriers include coverage for substance abuse treatment and rehabilitation services in their group health insurance plans. 

What options are available to employees if their workplace mental coverage is inadequate?

If your group plan doesn’t offer mental health support or the coverage available is not sufficient, consider buying a personal health insurance policy that covers psychotherapy. 

Although individual plans may differ in their specific coverage details, here are some Canadian insurance companies that typically include psychotherapy in their group health insurance plans:  

• Sun Life
• Manulife
• Canada Life
• Blue Cross
• Assumption Life

In addition to these, there are several insurers out there that might cover psychotherapy. So, don't worry if you don't see your provider of choice on this list. 

Before you sign the contract, carefully go through the policy documents to confirm details. Look for sections about “psychotherapy”, “paramedical services”, or “mental health benefits”, specifically whether the plan pays for Registered Therapists or Registered Social Workers. 

If you don’t find the information you are looking for, or if you found it but don’t fully understand it, call your insurance carrier. Don't hold back on asking questions — they're there to help. 

Some of the questions that you may want to ask are: 

1. Does my plan provide coverage for psychotherapy? 
2. Does it cover both Social Workers and Registered Psychotherapists? 
3. Is there a yearly cap on the coverage amount or the number of sessions in a year? 

Conclusion

Mental health is crucial for overall wellbeing. It helps us deal with daily stress, as well as major life changes. Mental health issues can affect anyone at any time. Common mental health issues include depression and anxiety, stress, obsessive compulsive disorder, and substance use disorders.  Both workplace factors and external events can cause or worsen mental illness, impacting employee productivity and performance. 

Providing adequate mental health coverage to employees facilitates timely intervention and reduces out-of-pocket treatment costs. At Dundas Life, we’re dedicated to matching you with the right health insurance product and company, so your employees can get the mental health cover they deserve. Speak with a licensed insurance advisor today.

FAQs

What can employers do to identify mental health concerns among staff members?

Some of the things that employers can do to identify mental health issues among their workforce are: 

• Looking out for any significant changes in how their team members act, such as fluctuations in mood or a sudden dip in performance
• Regular one-to-one meetings with team members 
• Creating a culture of openness at work 
• Training managers to recognize signs of mental health challenges

How does an Employee and Family Assistance program help an employee facing mental health issues? 

Employee and Family Assistance Programs, or EFAPs for short, offer help to employees (and their immediate family members) struggling with mental illness. Employees can access counseling and resources when they feel low or stressed, whether it's because of personal issues or workplace stuff. 

What are the most common mental health issues?

Some common mental health issues in the workplace include anxiety and depression, work-related stress, workplace bullying, obsessive compulsive disorder, and substance use disorder. 

Some common signs of stress and mental health include: 

• Psychological signs like anxiety, feeling low, distress, and tearfulness
• Physical signs like headaches, appetite changes, indigestion, and fatigue
• Behavioral signs like withdrawal, increased anger or irritability, feeling restless or on edge, increased smoking and drinking, and using recreational drugs 

How can employers support employee mental health? 

Employers can offer mental health support to employees in many ways: 

• Including mental health coverage as part of your health care plan
• Offering a robust Employee and Family Assistance program 
• Training managers on mental health can help them identify employees who may be struggling with mental health issues
• Promoting a healthy work-life balance

Why should employers protect and promote the mental health of their employees? 

It makes good business sense to ensure the wellbeing of your employees. Benefits for the employer include lower staff turnover rate, improved productivity, reduced staff absences, and better working relationships.