Lyra Forecast: Rising Mental Health Claims for Youth and Severe Needs

Lyra Health, a leader in Workforce Mental Health solutions for employers, today shared early insights from its 2025 Workforce Mental Health Trends Forecast. The fifth annual study found that 81% of benefits leaders are increasingly worried about the rising levels of serious mental health care needs within their organizations. This growing concern reflects a broader trend where employers are facing rising healthcare claims, primarily driven by a small group of employees and dependents with complex, high-cost conditions.

Rising Health Care Claims for Children, Teens, and Serious Mental Health Needs

Lyra Health’s research reveals that nearly half of benefits leaders have observed an increase in health care claims related to children, teen mental health, and serious mental health conditions, including substance use disorder and suicidality. This rise is partially due to a lack of access to adequate care, including specialists and specialized programs. The study found that 82% of benefits leaders believe employees face difficulties finding quality care for themselves or their families through traditional Employee Assistance Programs (EAP).

Dr. Alethea Varra, Senior Vice President of Clinical Care at Lyra Health, noted, “Mild and moderate issues like stress and anxiety can escalate into more complex conditions such as substance use disorder, depression, and suicidality if left untreated. The demand for care is overwhelming, yet provider shortages and limited access to quality care make it difficult for individuals to receive timely support, leading to more costly interventions later on.”

To address this, a comprehensive approach to mental health care is crucial, covering a full spectrum of needs. By offering access to evidence-based care, including outpatient services, inpatient care, and preventive programs, employers can improve employee well-being and reduce long-term costs.

Impact of Macro Economic Conditions on Workforce and Organizational Well-Being

The broader economic climate is amplifying challenges for both employers and employees. As financial stress increases due to rising medical bills and living costs, 39% of benefits leaders identified financial stress as a major factor impacting employee mental health over the past year—more than double the figure from the previous year. In response, 92% of benefits leaders are seeking additional support to address non-medical factors affecting mental health, such as housing, financial stability, and food security.

With mounting pressure to maintain competitiveness, 40% of benefits leaders identified excessive workloads as the top work-related factor harming employee mental health. This has led to an increase in work-related stress and burnout, with 34% of benefits leaders citing these as major concerns—up from 24% in 2023.

Dr. Joe Grasso, Vice President of Workforce Transformation at Lyra Health, explained, “Job-related stress often surpasses what individuals can handle on their own, leading to poor well-being, higher disability claims, increased health care costs, lost productivity, and turnover. Employers can reduce the human and economic toll by addressing the root causes—rethinking policies, management practices, and workflows to create healthier, more sustainable work environments.”

2025 Workforce Mental Health Trends Forecast: Additional Findings

The report, based on responses from over 500 HR and benefits leaders at U.S.-based organizations with global workforces, highlights key trends shaping workforce mental health in 2025. Additional findings include:

  • 50% of benefits leaders identified stress and anxiety as the top mental health challenges employees faced in the past year.
  • 74% of benefits leaders reported that employees struggle to find specialists to address serious mental health needs through health plans or EAPs.
  • 1 in 5 benefits leaders identified addressing serious mental illness as a key focus of their mental health strategies for 2025.

About Lyra Health

Lyra Health is a leading provider of Workforce Mental Health benefits, serving over 17 million people globally. The company transforms access to life-changing mental health care through AI-powered provider matching, personalized support, and a digital platform offering evidence-based services. Lyra connects individuals to the largest global network of mental health providers, addressing all mental health needs and delivering exceptional outcomes. Research shows that Lyra’s model helps people recover twice as fast and reduces overall healthcare claims by 26% annually for participants.

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