Challenge

The employer was experiencing rising healthcare costs alongside a workforce with a higher‑than‑average prevalence of behavioral health conditions. Recognizing the impact this was having on both clinical outcomes and overall spend, Hylant supported the client by vetting multiple digital mental health providers and assisting with the implementation and ongoing strategy of the selected solution.

With medical spend already exceeding national benchmarks, the organization needed to understand whether investments in mental health support were driving meaningful financial and clinical outcomes, particularly related to chronic conditions and long-term cost trends.

Solution

The employer approved a digital mental health provider’s recommendation to conduct an independent evaluation of program impact through a third-party actuarial firm. Hylant supported the employer by ensuring the analysis focused on outcomes most relevant to the organization’s benefits and cost‑management goals.

The actuarial partner analyzed two years of medical claims, eligibility, and engagement data, using condition-based propensity matching and risk-adjusted benchmarks to compare nearly 2,000 engaged employees against the employer’s broader population of more than 27,000 members. A difference-in-differences methodology was used to isolate medical cost savings, while condition-specific performance scores highlighted where engagement drove the greatest clinical and financial impact.

This collaborative approach gave the employer confidence in the findings and a clear understanding of how mental health engagement influenced medical spend, chronic condition performance, and long-term cost trends.

Condition-Specific Insights

The analysis revealed meaningful improvements across several high-cost and high-impact condition categories among engaged employees:

• Maternity, musculoskeletal, and cancer conditions showed strong performance improvements compared to disengaged members
• Behavioral health prevalence was high across the population (35–50%), consistent with healthcare industry norms
• Despite higher overall prevalence, engaged employees experienced lower rates of new behavioral health diagnoses, suggesting earlier identification and intervention
• Chronic condition performance scores were consistently lower for engaged members, indicating reduced cost and utilization over time

These findings reinforce the role of proactive mental health engagement in influencing both behavioral and physical health outcomes.

Key Opportunities

Based on the results of the analysis, several opportunities were identified to further improve outcomes and maximize the value of the mental health benefit:

• Increasing employee engagement across underutilized groups
• Expanding outreach tied to chronic condition management
• Strengthening behavioral health navigation and care coordination
• Integrating mental health support more closely with maternity and other high-impact benefits

Implementing these strategies could further improve employee well‑being while driving additional medical cost savings.

When mental health benefits are actively used—not just offered—they can reduce medical spend and improve outcomes across multiple chronic conditions. By pairing independent analytics with strategic benefit design, Hylant helps employers turn employee well-being investments into measurable financial results.