Employers are facing growing pressure on their benefits plans as financial stress shapes how employees access care, use coverage and experience health outcomes across life stages, according to a new report by Beneva Inc.
It found mental illness alone is estimated to cost the Canadian economy $51 billion annually, while mental-health leaves cost employers twice as much as those related to physical disability.
Among younger workers aged 18 to 30, financial pressure is contributing to the increased use of mental-health services, according to the report, with the number of insured individuals consulting a mental-health professional doubling between 2017 and 2025. Antidepressant usage also grew at a rate 2.5-times higher than in other age groups over the same period.
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Despite rising demand for psychological support, pharmacological treatment remains the most common form of care, a gap the report attributes partly to access barriers, lengthy wait times and out-of-pocket costs that make therapy less accessible than medication.
For employees aged 31 to 50, sustained financial strain is linked to higher psychological distress, with this group recording the highest level of psychological care claims and an eight per cent increase in short-term disability claims related to mental-health issues since 2019, noted the report.
It also found drug costs rise among employees in this age group, increasing by more than 50 per cent per insured compared to younger adults, reflecting a broader shift toward chronic conditions during prime working years.
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Among pre-retirees aged 51 to 65, the report found chronic conditions are the dominant driver of claims. Medication costs increased a further 27 per cent per insured in this age group compared to mid-life adults, with more than one in four adults in this age group living with two or more chronic conditions.
In cases of critical illness, which can affect employees at any age, financial strain can compound recovery, according to the report, which noted concerns about income, job security and mounting expenses can compete with the energy needed for treatment and healing. As well, it found these conditions are associated with longer disability durations, greater reliance on high-cost medications and more complex care needs.
The report also found barriers to returning to work after a critical illness can persist well beyond the end of treatment, extending periods of reduced income and uncertainty, while financial stress is associated with cost-related non-adherence, including delayed refills and skipped doses, which can worsen health outcomes and increase the likelihood of disability.
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