Employer healthcare costs are surging. This year, they’re projected to rise 9%, yet one of the biggest cost drivers remains ignored: treatment-resistant depression (TRD). Untreated mental health conditions cost U.S. businesses $193 billion annually in lost productivity, absenteeism, and turnover. Traditional programs, such as Employee Assistance Programs (EAPs), are falling short for those who have exhausted standard mental health treatments without success. TRD directly contributes to lower productivity, more absences and higher employee turnover, all of which raise the overall cost per employee. Failing to address TRD is now a financial risk that employers can’t afford to ignore.
TRD’s financial burden
Employees struggling with TRD don’t just miss work. When they’re present, they’re unproductive. Research shows that workers with untreated depression lose up to 31 workdays annually, with presenteeism reducing output by 35%. The financial toll billions lost every year.
Traditional solutions, like EAPs, were designed to help. However, for those who have already tried conventional treatments without success, they are simply not enough. The cumulative effect of TRD on absenteeism, reduced output and employee turnover results in a high overall cost per employee.
Traditional methods fall short
Breakthrough treatments like ketamine-assisted therapy (KAT) are no longer “emerging,” they are here and delivering real results. With the FDA expanding approval for Spravato (esketamine) for standalone use and leading medical institutions adopting KAT, forward-thinking employers are already incorporating these treatments into their benefit programs. The impact? Faster recovery, reduced absenteeism, and improved productivity, but more importantly it offers healing and hope for patients with treatment-resistant depression (TRD), PTSD, and severe anxiety.
KAT is beginning to be recognized as a viable option for those who haven’t seen improvement with standard therapies. Unlike traditional antidepressants, the treatment often brings quick relief for people with TRD. This can help speed up recovery and get them back to feeling like themselves, and back to work, sooner.
What does this mean for employers? By integrating treatments like KAT, they can potentially offset increasing costs by addressing untreated mental health conditions. As a result, these employers create a workplace with healthy employees and a healthy bottom line.
A guide to developing a healthy workplace
Workforce mental health is an HR issue, but beyond that, it’s also a business imperative. Companies that integrate evidence-based solutions like ketamine-assisted therapy (KAT) into their benefits reduce medical costs, improve productivity, and retain top talent. Those who delay will face higher turnover, increased disability claims, and rising healthcare expenses.
- Enhance employee benefits: Start by taking a hard look at your current mental health programs. Consider offering regular mental health screenings and making counseling services easy to access. Catching issues early can stop them from developing into full-blown TRD.
- Integrate innovative treatments: With breakthrough therapies like KAT emerging, it’s time to update traditional treatment approaches. Adding these options to employee benefit plans can help people recover faster, lower absenteeism, and boost overall productivity.
- Create a supportive workplace environment: Employees need to feel truly supported. Creating a workplace culture that makes mental health a priority can reduce turnover and boost job satisfaction.
Employers need to act now. Healthcare costs will continue to climb, making addressing TRD a strategic business move. Companies that distinguish themselves won’t just acknowledge the reality of TRD, they’ll actively champion solutions like KAT that address it, ultimately improving lives alongside their bottom line. The choice is clear: invest in comprehensive mental health solutions now, or pay the mounting costs of inaction for years to come.
Photo credit: Aleksei Morozov, Getty Images
Marcus Capone is the Co-Founder and CEO of TARA Mind, whose mission is to expand access to safe, effective and affordable mental health therapy through innovative benefit programs that connect people to specialized care, delivered responsibly by a premium network of therapists and clinics. Marcus is also the Chairman and Co-Founder of VETS: Veterans Exploring Treatment Solutions, a pioneering 501(c)(3) organization that provides resources, research, and advocacy for U.S. Special Operations veterans seeking alternative mental health treatments. Through his successes as a Veteran Navy SEAL, college Quarterback, USC Business School alum, and entrepreneur, Marcus’s strong leadership qualities allow him to build highly talented teams of individuals committed to driving positive change.
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