In recent years, there has been a surge in mental health awareness across the workers’ compensation landscape. These claims have become a higher priority for insurers, with an estimated one-in-five adults (51.5 million) living with mental illness in the United States.
Although mental health claims were initially created to cover instances of first responders experiencing post-traumatic stress disorder, workers’ comp has recently seen coverage expand to other industries and frontline employees like nurses and healthcare professionals.
At the state level, New York was one of the first states to open its doors to mental health coverage.
In the past year, several states have followed suit with expanded programs covering a range of work-related mental health conditions, including anxiety and depression. Some of these states include Vermont, where all government employees are eligible for coverage of anxiety-related claims. As of 2024, Washington extended benefits to registered nurses suffering from PTSD who provided direct patient care for a minimum of 90 days.
State policies are evolving rapidly, and broader mental health coverage is now available to a growing number of employees beyond first responders.
It’s also becoming more apparent that the costs associated with mental injuries extend beyond the organization and impact the broader economy.
According to data from the World Health Organization, depression and anxiety disorders cost the global economy $1 trillion annually in lost productivity. Some reports suggest employees with depression miss an estimated 8.7 more work days per year than their colleagues without depression. To help mitigate or get ahead of some of these costs, workers’ comp programs should consider early intervention tactics.
In the case of any claim, not just mental health, employers can approach the first 30 days of a workplace injury with early intervention to set the foundation for a faster return to work.
Early intervention helps reduce the costs and time associated with claims. By adopting the latest technologies, coupled with human support and guidance, this approach provides long-lasting benefits to the employee and their overall well-being.
Mental Health as a Workplace Priority
Before adopting early intervention tactics, companies must follow the lead of states and begin to remove the stigma of mental health in the workplace. Employees with mental health challenges often face stigma and discrimination, which can further impact their well-being and career progression. For employers, having discussions and offering employee assistance programs demonstrate care and support.
Promoting and supporting mental health in the workplace is crucial for several reasons:
• Workplace impact–Mental health issues like depression, anxiety, and stress can significantly impact an employee’s ability to concentrate, make decisions, and perform their job effectively. This can lead to reduced productivity, lower quality of work, and increased errors or accidents.
Employees struggling with mental health challenges are more likely to take time off work (absenteeism) or be present but not fully engaged or productive (presenteeism). This can result in significant costs for organizations due to lost productivity and the need to cover for absent employees.
Poor mental health can lead to job dissatisfaction, decreased motivation, and burnout, ultimately contributing to higher employee turnover rates. Replacing and training new employees can be costly and disruptive for organizations.
• Organizational responsibility–Mental health issues can negatively impact an employee’s overall well-being, leading to physical health problems, strained relationships, and decreased quality of life. A mentally healthy workforce tends to have higher morale, better engagement and a more positive work environment.
Organizations have a legal and ethical responsibility to provide a safe and healthy workplace, which includes addressing mental health concerns. Failure to do so can result in legal liabilities, increased healthcare costs and decreased profitability.
‘Workers’ comp is on the brink of change, where mental health is beginning to receive the attention and treatment it deserves.’
Companies that prioritize mental health and offer supportive resources and programs are more attractive to potential employees and better positioned to retain top talent.
A workplace that promotes mental health and well-being cultivates a positive organizational culture, which can enhance the company’s reputation and attract customers, partners, and investors who value social responsibility.
By prioritizing mental health in the workplace, organizations can create a more productive, engaged, and resilient workforce, while also promoting a positive work environment and mitigating potential legal and financial risks.
It’s important for organizations to normalize mental health conversations through leadership training, peer support groups, and internal campaigns. Organizations can also begin to integrate mental health screenings into standard post-injury protocols, as is completed with physical injuries. By making early intervention and mental health support a cornerstone of an organization’s workers’ comp strategy, costs are reduced, and more importantly, a message is sent that people matter.
A High-Tech, High-Touch Approach to Mental Health Claims
A high-tech, high-touch approach in workers’ comp balances the critical need for providers to adopt the latest technologies while also ensuring that human-first interactions remain central throughout the claims process.
Companies should consider adopting IT support, AI support, or screening technologies, but also learn how to use these systems before cases are filed. Advanced tools, such as AI-powered screening platforms, telehealth triage, and predictive analytics, can help flag high-risk cases early before complications arise. Effective technology will help support the case manager in addressing a claim in a timely and accurate manner, ultimately helping the patient to return to work as soon as able.
Medical case managers also play a crucial role in helping avoid mental health complications when employees are injured on the job. Case managers can proactively assess the risk of mental health issues during the initial stages of injury management. Within the first 30 days, employers should be provided with actionable guidance to reduce costly missteps and support positive outcomes for workers. They can screen for signs of depression, anxiety, or other mental health concerns and refer employees to appropriate resources and support services.
Effective early intervention isn’t just policy–it’s people-driven. That starts with the frontline clinicians, nurses, and case managers who are closest to the injured worker. Case managers can also conduct thorough evaluations to understand the employee’s physical, emotional, and psychosocial needs. This holistic approach can help identify potential triggers or risk factors for mental health complications, such as chronic pain, loss of independence, or financial stress. Eliminating these triggers or risk factors helps meet the ultimate goal of getting the employee healthy and back to work.
Workers’ comp is on the brink of change, where mental health is beginning to receive the attention and treatment it deserves. By understanding and establishing the critical need to validate mental health in the workplace, companies can show they value employees by treating them as humans; embracing the mind, body, and soul together; and addressing all claims equally.
It’s time for claims professionals, clinicians, and employers to recognize that mental health care is not an extra–it’s essential.
This article was originally published in Claims Journal, Insurance Journal’s sister publication.
Thomas is vice president of Clinical Solutions at CorVel.
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