Depression Calculator Tallies Business Costs of Employees’ Mental Illness

People with depression may experience significant impairment in daily functioning, including their performance at work. How much that impairment costs employers is something they can now estimate using a new online tool developed by the APA Foundation’s Center for Workplace Mental Health.

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An estimated 6 to 7 percent of full-time workers in the United States live with major depression, according to data from the Center for Workplace Mental Health (formerly the Partnership for Workplace Mental Health). In addition, data indicate that employees with depression miss an average of 31.4 workdays each year and lose another 27.9 workdays to unproductivity—or presenteeism—which costs employers an estimated $44 billion annually.

While at work, people who are depressed have difficulty concentrating, making decisions, managing their time, communicating with coworkers, and meeting output expectations, among other challenges, according to the Center for Workplace Mental Health.

The center, renamed in 2017, was created by the APA Foundation to partner with employers to eliminate stigma, reduce barriers to care, raise broader mental health awareness, improve and implement mental health programs, and design benefits that improve employee mental health. It consists of a network of more than 10,000 employers.

The new tool—the Depression Calculator—was launched in May. Its goal is twofold: add up the costs of depression for each employer and then provide resources for intervention, such as health insurance that supports collaborative care and workplace mental health programs. (Two other calculators are also on the site for assessing the business costs associated with alcohol and substance use disorders.)

“The resource can be used by businesses large and small, which is what sets it apart,” said Ewuria Darley, M.S., associate director of the center. She added that human resources professionals, as well as CEOs and other stakeholders, can use the calculator to demonstrate the value of employee health care plans that support mental health.

An algorithm based on peer-reviewed research generates the results. Links to all related studies are listed in the “About the Calculator” section of the website.

Employers enter the company’s size, type of industry, location, and employee age/gender data—which can be manually modified for accuracy.

According to the information employers provide, the calculator estimates the daily wages and benefits of employees likely to be affected by depression. It calculates low, average, and high ranges for lost workdays due to absenteeism and presenteeism and the associated costs. The tool then assesses potential cost-savings if depressed employees receive quality treatment—up to 80 percent show improvement, according to the center. Finally, all estimates are summarized in an individualized report that delineates ways to cut costs.

Noting that many employees receive mental health treatment from primary care providers, the report endorses health plans that support collaborative care models that cover mental health screening, care management, and psychiatric care. Collaborative care can reduce workplace absenteeism by 39 percent (compared with 21 percent for basic medical care), according to the center.

In addition, employers are urged to audit health plans for compliance with the Mental Health Parity and Addiction Equity Act, which mandates parity between medical and mental health insurance benefits.

The center recommends that employers build a culture that embraces emotional and mental health. As a general measure, workplace programs (many are listed on the site) reduce stigma and raise awareness, which increases the numbers of employees who seek help for depression.

Not only does this protect the employer’s bottom line, but also it improves the quality of life for employees with depression, Darley said.

“Treatment works and is cost-effective,” she added. “When employees receive effective treatment for mental health conditions, the result is lower total medical costs, increased productivity, lower absenteeism, and decreased disability costs.” ■