A recent Canadian study finds $33 billion per year is lost in the workplace from employees suffering from emotional disorders. Dr. Robert Wilson, presenter at The Canadian Health and Wellness Innovations Conference in Las Vegas, hosted by the International Federation of Employee Benefits Plans, got the room’s attention when he revealed this astounding number during his presentation on behaviour modification methods.
“The number of folks that [are] away on disability benefits is staggering,” he says. “And we understand that over half of them are away from work because of problems related to psychological disorders.”
Depression is one of the top psychological disorders for those on leave. In less than 10 years, the World Health Organization predicts depression will be the second-leading cause of disability in the world, Wilson told the audience.
Typically, depression is treated with medication, which Wilson admits is appropriate for some instances. Yet in many cases there are more effective ways to treat the illness—such as cognitive behaviour therapy (CBT).
Wilson says in Canada, treating depression with CBT would cost $2,000 to $2,500. However, few plans have that much coverage for psychological treatment—they usually have $1,000 in coverage. One audience member admitted his plan only had $500 coverage, which he realized at the conclusion of Wilson’s presentation was grossly inadequate.
The cost of treating someone with medication for depression can range from $1,800 to $3,500 a year, depending on the medication. It’s not uncommon for people to be on this medication for several years and off on disability for the same amount of time.
Doing the simple math, it seems obvious that CBT should be the first line of treatment for depression, one that would likely save employers thousands of dollars in disability claims, drug costs and lost productivity. From this standpoint alone, why isn’t it? Well, there are several reasons.
First, he said, most plans don’t covert the full extent of therapy and plans generally provide more coverage for medication. Therefore, that’s what is generally prescribed. Second, medication is the easiest form of treatment. Last, there is a lack of awareness around its effectiveness. One person in the room—a trustee of the benefits plan—was hearing about this type of treatment for the first time. It’s unlikely he was the only one.
“It’s not to say that medication doesn’t make you feel a bit better,” Wilson says. “Often times, there’s a placebo effect. It works because you feel you are doing something about the problem.” He adds studies have shown that CBT is more effective since it gives people new skills to cope with their problems. The only skill taking medication will help you master is opening a pill bottle.
When drug plan management and rising costs are such a concern for employers, shouldn’t other options be considered? Employers need to take a hard look at their plan data, find out where their money is being spent and come up with alternative savings methods. This sounds like it might be one of them.