A significant number of US employees are not making use of employer-provided mental health benefits, leaving insurers and businesses with a growing concern over costs and workforce resilience, according to Prudential Financial’s latest Benefits & Beyond report.
The 2025 installment, New Workforce Expectations: Address Mental Health to Help Get Employees Needed Support, found that while 59% of employers offer employee assistance programs (EAPs) more than half of eligible employees have never used them. This reluctance persists even among those who acknowledged a need for assistance.
For insurers, the underuse of EAPs represents both a coverage and claims management challenge. Left unaddressed, mental health concerns can lead to higher short-term disability claims, increased health plan costs and elevated risk for long-term absence.
The report also highlighted Gallup data showing mental health issues cost the US economy $47.6 billion annually in lost productivity, with affected employees missing four times more work.
Barriers to EAP uptake include fears over confidentiality, potential negative career consequences, and uncertainty about program details. Prudential noted that 22% of employees say they know little about their benefits, and 10% find them too complex.
“Employers must step up to provide needed support and foster a culture where using mental health programs is not only acceptable but encouraged,” said Michael Estep, president of Prudential Group Insurance. “Proactive and stigma-free engagement is essential to building resilience in the workforce.”
From an insurance standpoint, improving participation in mental health programs could reduce claim costs and enhance loss prevention strategies. Prudential suggests expanding beyond traditional benefits, offering options such as mental health days, flexible work schedules, and stress management programs.
By increasing awareness, simplifying access, and normalizing the use of EAPs, insurers and employers alike can help mitigate the financial and operational impact of untreated mental health conditions, the company said.
