Do businesses need health insurance to support employee mental health?

Employee mental health impacts various metrics, including employee engagement, retention and productivity. Mental health issues can also be linked to physical health problems. Employees value mental health support as part of their benefits package, meaning providing these can improve retention and help your business attract new talent.

Research suggests that poor mental health costs the UK economy £102 billion a year, due to a combination of mental health-related sick days, decreased productivity and resignations.

Private health insurance lets your team access private medical treatment and other support services. The level of support your health insurance provides depends on the level of coverage you select. Health insurers offer a basic plan that you can enhance by adding more comprehensive mental health coverage to include more treatments.

Here are the mental health support services and treatments you can expect to find depending on your chosen policy.

Access to counselling and CBT

With a basic health insurance plan, your employees can typically access 8-10 counselling or cognitive behavioural therapy (CBT) sessions each year. These can be ideal to support mental health issues caused by temporary stress, but may not be enough to treat employees with more serious mental health conditions.

Enhanced coverage lets you add more treatment sessions and a wider variety of treatments.

Telephone helplines and virtual GP support

All medical insurance policies provide virtual GP services that offer appointments 24/7 by telephone or online video call. Your employees can use these appointments to seek advice, treatment or a referral to a specialist for any health issue your policy covers, including mental health concerns.

Most insurers also operate telephone helplines. Many are staffed by nurses, but some offer more specialist advice, including mental health support for employees and their families.

Self-help tools

Access to self-help tools empowers employees to care for their health, manage stress, or identify issues that may benefit from additional support. Health insurers provide various online articles, tools and resources that support mental health.

Some providers offer management training and resources to help your leadership team manage mental health in the workplace or create an inclusive culture allowing employees to discuss their mental health struggles.

Well-being discounts

Most insurers have a member discount programme that lets policyholders access discounts on various products and services. These can include well-being benefits like gym memberships and health screening, or treats such as free coffee or discounted cinema tickets.

Some also include mental health support services, such as the Calm or Headspace mindfulness and meditation apps, which can provide preventive care and help promote good mental health.

In-patient and out-patient psychiatric treatment

Basic medical insurance policies typically don't cover in-patient or out-patient treatment by a psychiatrist or other mental health professionals. You can add enhanced coverage to your policy, allowing employees to access private treatment from psychiatrists, psychologists, and other therapists. Enhanced coverage also provides in-patient and day-patient treatment up to a specified number of days.

Some providers offer extended coverage in their basic business policies, so it's worth shopping around to get the best coverage for your budget.

Access to an Employee Assistance Programme (EAP)

An EAP is a third-party service that provides employees with a limited number of counselling sessions (typically 8-10). EAPs also include other telephone helplines offering advice and guidance on legal and financial issues. The helplines don't provide tailored advice but can give general guidance and signpost employees to other support services.

EAPs are usually available as an added extra on business health insurance policies.

Business support to develop well-being initiatives

Health insurance can provide business services that vary depending on the number of employees your business has. Most policies offer employee health assessments to support employees' physical and mental health and help them improve their well-being. Providers can use these assessments to give you anonymised data showing health trends and areas for improvement.

Corporate policies can go a step further, providing support to help you develop workplace well-being initiatives or enhanced mental health support.

Health insurance can provide access to mental health support and treatment for mental health conditions. However, it's only part of the picture. A positive culture and benefits that take a holistic approach to mental health promote good mental health in the workplace. Here are a few benefits your business can provide that supplement the services health insurance offers. You can also consider whether these represent a viable alternative to private medical insurance.

Flexible working

Flexible working can support mental well-being and help employees create a better work-life balance. Employees' needs differ, and you can design flexible working arrangements to suit individuals while also setting boundaries to meet business needs. For example, some employees may prefer an earlier or later start, a four-day week or hybrid working where they vary their working location.

Research suggests that some employees prefer formal, fixed flexible working arrangements, although some may also value more informal arrangements.

Generous annual leave

Annual leave gives your team time away from work to recharge, spend time with their families and focus on their hobbies and interests. An annual leave allowance that goes beyond the statutory minimum demonstrates your commitment to employee well-being.

It's also worth considering introducing additional discretionary mental health days that employees can take at short notice. These aren't recorded as sick leave, allowing employees to take a day or two each year to manage their mental health.

Workplace well-being initiatives

Workplace well-being initiatives focus on a health topic and provide education and support to help employees improve their well-being. It's a good idea to choose a health issue that impacts your workforce for maximum impact. For example, if you work in a high-pressure environment, a suitable initiative can help your team reduce stress.

Mental health initiatives can provide mental health awareness training, helping your team identify mental health issues in themselves or their colleagues and seek appropriate support. You can also introduce mental health resources and signpost employees to sources of support and treatment.

An employee assistance programme (EAP)

We've mentioned EAPs as an optional extra on your business health insurance policy. You can also invest in a standalone programme that provides your team with access to confidential third-party counselling and telephone helplines. Helplines vary depending on your chosen provider, but can offer guidance on sources of financial, legal and medical advice.

Standalone services can be more flexible than those available with health insurance, meaning you can choose a programme that meets employees' needs.

Financial benefits

Financial benefits can reduce financial stress and help your employees plan for the future. Financial education and salary sacrifice schemes that help staff budget and save money on living costs can give them a better standard of living and support mental well-being.

Pension contribution matching lets them plan for later life. Death-in-service benefits offer peace of mind as they know their loved ones will have a financial safety net if they pass away.

An investment in employee health insurance has its advantages. It provides quick access to private medical care for physical and mental health conditions, along with various support services and resources. Business policies typically come with administration tools that save you time compared to administering different services, such as a standalone EAP or counselling service, separately.

Corporate businesses with a large workforce can access a broader range of services, such as help to analyse employee health data and create workplace well-being initiatives. It's wise to seek advice from a broker to understand what health insurance can offer your business.

However, when it comes to supporting employees' mental health, it's a good idea to go beyond medical insurance and introduce a comprehensive benefits package.

As you've seen, there's more than one way to support employee mental health. Globacare's specialist brokers offer guidance so you can invest in insurance policies that support your employees' mental health and well-being. Contact us for advice tailored to your needs.