What Can We Do About Rising Mental Health Claims?

The top 10 things employers are doing to support mental wellness in the workplace

Why have mental health claims been rising so fast in the last few years? It’s an important question for us to try to get a handle on, not only in terms of understanding what’s happening, but also in terms of what we should be doing in response to manage claims and support employees.

According to information from Sun Life, the number of their plan members who submitted mental health claims grew by 70 percent between 2019 and 2023. That time span includes the Covid years, which may explain the sudden increase, but I’m not seeing any drop-off in numbers in the post-Covid years.

A report from GreenShield suggests that mental health claims have risen by an eye-popping 132 percent since the pandemic.

We’ve always had mental health related claims of various types, but that category now tops the list of all disability claims, representing 40 percent of long-term disability for women and 30 percent among men.

When we say “mental health claims” we are actually referring to a number of different conditions. From what I’ve been able to find in researching this, the top five conditions are usually considered to be the following.

  • Adjustment disorders (usually following a major life event or change in workplace conditions)
  • Anxiety disorders
  • Depression and mood disorders
  • Burnout and stress
  • Post-traumatic stress and trauma-related issues

According to Sun Life, “adjustment disorders” and anxiety accounted for 40 percent of mental health claims, up from 25 percent in 2019.

The Mayo Clinic defines adjustment disorders as “excessive reactions to stress” that can result from traumatic events or changes in life and an inability to “get over” or adjust to the changes.

I’ve talked about “the well workplace” many times in this blog, and the goal of creating an inclusive workplace with a shared sense of commitment to wellness. Now, it’s one thing to talk about goals and to picture the kind of workplace culture we want to build, and it leads us quickly to the question, “Yes, but what can we actually do to make a difference?”

With that in mind, here are 10 things I learned over the years, both from the best practices of our clients and from what I’ve read on the subject.

  1. Leadership. Senior management has to create a clear understanding that the mental wellness of everyone in the workplace is an over-riding priority, a core value, and a key element of everyday management. It’s more than written policies and occasional interventions. It has to be made clear that “supporting mental wellness is what we believe in and how we do things around here.”
  2. Frontline management training. The way for top management to effect meaningful change is to train frontline staff, managers and supervisors to factor mental wellness into all aspects of the job. How tasks are assigned, how to communicate with employees, how work is supervised, how employees are trained and instructed, and how constructive feedback is given.
  3. Keeping a finger on the pulse. Every leader in the workplace who directly supervises employees has to be trained and encouraged to stay in touch with the wellness of everyone in the group. It can be as simple as making it a point to chat, however briefly, with every employee on a regular basis. How are you doing? What are you thinking about? Any problems I can help with?
  4. Troubleshooting. Everyone with leadership responsibilities has to be trained to look out for and identify potential issues as soon as they arise and, hopefully, before they become larger problems. What are the signs of distress or potential burnout an employee may show? What does excessive stress look like? Is quality of work starting to slip and, if so, what’s going on? Are there changes in mood and demeanour that could be signalling an issue?
  5. Change management. Things are changing very rapidly in today’s workplace, and new things, new programs, new ways of communicating and reporting seem to be cropping up all the time. The result can be that more and more new requirements are piling up and that employees are barely up to speed on one new thing when another one comes along. That can lead to overload which, in turn, leads to burnout. Change needs to be carefully planned and phased in with appropriate training provided.
  6. Limit unnecessary communications. Many employees find themselves reading and answering emails for the first hour of every day, and are bombarded with more throughout the day, during lunch and even after working hours. But how useful are all those communications? It’s a good idea to establish some clear rules around internal communication, based on either need-to-know or need-to-ask. And there should be strict limits or even prohibitions on after-hours communications.
  7. Strictly manage meeting time. One of the leading complaints I hear routinely is that people find it hard to deal with too many meetings that often go on too long. Establish “meeting free” blocks of time when employees can work uninterrupted, and time-limit regular meetings so that they start and end at predictable times.
  8. Make mental wellness a recognized standard. We’ve talked about removing the stigma from mental health concerns, and I think we should translate this into accepting that stress, anxiety, and burnout are things that can happen to anyone and need to be dealt with, either through addressing the causes or helping the employee learn to cope.
  9. Provide employees with resources for coping. The employee assistance program should be promoted to employees and its use normalized as a resource that anyone might turn to from time to time. Online counseling and CBT (cognitive behavioural therapy) are increasingly being offered and can be extremely helpful.
  10. Proactive programs. Of course, every workplace is different, and the needs in any given workplace will change over time. There are many different things that employers are doing to prevent mental wellness issues from arising. Some of these programs include better workplace accommodation and return-to-work plans; support for employees on medical or other leave; absenteeism management; workload reviews; enhanced performance management; in-house training; health and fitness programs; weight management counseling; financial planning seminars; and, well, the list is long and varied.

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2026 Canadian Leadership Council on Drug Plan Partnerships

In May, the Canadian Leadership Council on Drug Plan Partnerships convened industry thought leaders to discuss important topics including balancing cost and care in speciality drug management, the patient journey from diagnosis to medication access and what drug plan management will look like in the next decade. Download the full report here.

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Plan Sponsors’ Guide to Obesity, from Benefits Canada. Download here.

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I really appreciate comments, ideas, suggestions or just observations about the blog or any other topics in benefits management. I always look forward to hearing from readers. If there’s anything you want to share, please email me at bill@penmorebenefits.com.

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