Mental Health Month: Supporting Mental Health Through Employee Benefits

May 12, 2026

Mental Health Awareness Month is an important reminder that mental wellness is just as essential as physical health. Today’s employees are balancing increasing workplace demands, family responsibilities, financial stress, and personal challenges, and employers are feeling the impact.

More than 1 in 5 Americans experience a diagnosable mental health condition each year, yet many still do not receive the treatment or support they need. Access to quality mental health benefits through employer-sponsored health plans can play a critical role in helping employees seek care earlier, improve overall wellness, and stay engaged at work.

At Shepherd Insurance, we believe employee benefits should support the whole person. Through our Population Health and Employee Benefits solutions, we help employers create healthier, more productive workplaces while controlling long-term healthcare costs.

 

Why Mental Health Benefits Are Essential for Employers

Mental health conditions such as anxiety, depression, stress-related disorders, and substance use disorders continue to impact workplaces across the country. According to the National Alliance on Mental Illness (NAMI), untreated mental health conditions can contribute to:

  • Increased absenteeism
  • Lower productivity
  • Higher healthcare utilization
  • Employee burnout
  • Increased turnover
  • Poor workplace morale
  • Higher disability claims

Employers are increasingly recognizing that investing in mental health support is not just beneficial for employees but also a smart business decision.

Employees who feel supported are more likely to:

  • Stay engaged at work
  • Seek preventive care earlier
  • Remain loyal to their employer
  • Experience higher job satisfaction
  • Improve overall workplace performance


Understanding Mental Health Coverage Requirements

Under the Affordable Care Act (ACA), non-grandfathered health plans in the individual and small group markets are required to include mental and behavioral health treatment as one of the 10 essential health benefits.

Additionally, the Mental Health Parity and Addiction Equity Act (MHPAEA) requires health plans that offer mental health and substance use disorder benefits to provide coverage that is comparable to medical and surgical benefits.

This means employers offering health plans must ensure mental health benefits are not more restrictive than other medical benefits in areas such as:

  • Copays and deductibles
  • Visit limitations
  • Treatment authorization requirements
  • Access to care

Employers who fail to comply with MHPAEA requirements may face significant penalties and compliance risks.

 

The Real Cost of Ignoring Employee Mental Health

While healthcare expenses are often the focus of benefits planning, many employers underestimate the hidden costs of untreated mental health conditions.

These indirect costs may include:

  • Reduced employee productivity
  • Increased errors and workplace accidents
  • Presenteeism (employees working while struggling mentally)
  • Higher turnover and recruiting costs
  • Increased workers’ compensation claims
  • Strained workplace culture

Research consistently shows that the cost of untreated mental health conditions often exceeds the cost of effective treatment and support. For employers, prioritizing mental wellness can help reduce long-term healthcare expenses while improving employee retention and engagement.

 

Strategies Employers Can Use to Support Mental Health

Employers do not need to solve every challenge overnight, but small, intentional changes can make a meaningful impact.

 

1. Offer Employee Assistance Programs (EAPs)

Employee Assistance Programs provide confidential support services for employees dealing with stress, anxiety, family issues, substance abuse, financial concerns, and more.

EAPs can help reduce stigma around mental health treatment while encouraging employees to seek help earlier.

 

2. Promote Preventive Mental Health Screenings

Mental health screenings can help identify concerns before they become larger issues. Employers can encourage screenings through wellness initiatives, open enrollment education, and workplace health campaigns.

 

3. Educate Employees on Available Benefits

Many employees are unaware of the mental health resources already included in their benefits package. Sharing information about these resources on a regular basis can encourage use and support better outcomes:

  • Counseling services
  • Telehealth options
  • Crisis support resources
  • Wellness programs
  • Stress management tools

 

4. Encourage a Healthy Workplace Culture

Leadership plays a major role in reducing stigma surrounding mental health.

Employers can support mental wellness by:

  • Encouraging work-life balance
  • Offering flexible work arrangements when possible
  • Supporting paid time off usage
  • Training managers to recognize signs of burnout
  • Creating open conversations around wellness

 

5. Partner With Benefits Experts

Navigating healthcare costs, compliance requirements, and employee wellness strategies can be overwhelming. Working with a trusted employee benefits partner can help employers identify opportunities to strengthen mental health support while controlling costs.

 

How Shepherd Insurance Helps Employers Support Employee Wellness

At Shepherd Insurance, we understand that employee benefits are about more than insurance coverage; they are about creating healthier organizations and stronger teams.

Our Population Health and Employee Benefits solutions help employers build strategic wellness programs that support both physical and mental health.

Through our Population Health services, employers can access guidance and support in areas such as:

  • Employee wellness strategies
  • Benefits of education and communication
  • Preventive health initiatives
  • Healthcare cost management
  • Compliance support
  • Employee engagement programs
  • Data-driven population health solutions

We work closely with employers to create customized benefits strategies that align with workforce needs and organizational goals.

 

Why Mental Health Support Improves Business Performance

Organizations that prioritize employee mental wellness often experience:

  • Higher employee retention
  • Improved productivity
  • Reduced absenteeism
  • Lower healthcare costs
  • Stronger workplace culture
  • Increased employee satisfaction

Mental health support is no longer considered an optional workplace perk — it is an essential part of a competitive employee benefits strategy.

As workplace expectations continue to evolve, employees increasingly value employers who invest in their overall well-being.

 

Mental Health Awareness Month Is the Perfect Time to Review Your Benefits Strategy

Mental Health Awareness Month serves as a valuable opportunity for employers to evaluate whether their current benefits programs truly support employee wellness.

Questions employers should consider include:

  • Are employees aware of available mental health resources?
  • Does our health plan provide adequate mental health coverage?
  • Are we addressing burnout and workplace stress?
  • Do employees feel comfortable seeking support?
  • Are we offering preventive wellness solutions?

Reviewing these areas can help organizations strengthen employee well-being while improving long-term business outcomes.

 

Partner With Shepherd Insurance

At Shepherd Insurance, our team is committed to helping employers create benefits strategies that support healthier employees and stronger organizations.

Whether you are reviewing your current employee benefits plan, exploring wellness initiatives, or looking for ways to better support employee mental health, our team is here to help. Learn more about our Population Health solutions.