Virtual Solutions for Mental Health Improve Symptoms and Expand Access, but Some Tools Come with High Costs

NEW YORK —

A new evaluation from the Peterson Health Technology Institute (PHTI) indicates that virtual solutions for depression and anxiety can meaningfully improve outcomes for people with mild-to-moderate symptoms, but current pricing models for some result in higher total healthcare costs for employers and plans.

Mental health conditions like depression and anxiety affect one in five U.S. adults, and timely access to care remains a challenge because of provider shortages, long wait times, and affordability barriers. PHTI reviewed a range of virtual solutions that include on-demand digital content and activities, which can be used on their own or in combination with therapy and medication. The evaluation finds that these solutions expand access and are particularly effective for people who are not otherwise receiving therapy.

PHTI evaluated three categories of solutions that employers, health plans, and providers are increasingly adopting:

PHTI’s evaluation finds important differences in clinical outcomes and economic impact across these approaches:  

“Virtual solutions for depression and anxiety can expand access to care by offering a range of convenient, affordable, and effective treatment options,” said Caroline Pearson, executive director of PHTI. “Employers that offer these solutions as part of their benefits package can see lower healthcare spending per user and improved productivity. However, to manage total overall costs, employers must negotiate lower prices for blended-care solutions and help guide users to more affordable treatment options when appropriate.”

Depression and anxiety are two of the most common mental health conditions in the United States. Rates of depression and anxiety have steadily increased over the past decade and sharply spiked during the COVID-19 pandemic. Nationally, these disorders carry a significant economic burden, both in direct treatment costs and in indirect costs, such as lost productivity and absenteeism. Approximately $240 billion was spent in the United States on these two mental health disorders in 2020.

Large employers and health plans are increasingly adopting virtual depression and anxiety solutions to address rising unmet care needs. More than half (56%) of purchasers surveyed in PHTI’s 2024 State of Digital Health Purchasing survey said they offered or covered mental health solutions in the past two years, and that mental health remains a priority in the year ahead.

“Purchasers have ways that they can make these virtual solutions for mental health more effective, efficient, and tailored to patients. They can seek solutions offering lower per-member-per-month costs, integrate solutions into employee assistance programs to offset costs, and work with vendors to right-size solutions based on employees’ needs,” said Pearson.

PHTI evaluated 15 virtual depression and anxiety offerings from public and private companies, including: Amwell (SilverCloud), Big Health (DaylightRx), Brightside Health, DarioHealth, Headspace, Koa Health, Learn to Live, Lyra Health, Meru Health, Modern Health, Optum (AbleTo), Otsuka Precision Health (Rejoyn), Spring Health, Talkspace, and Teladoc Health.

PHTI’s evaluation is based on its independent assessment framework, which evaluates the clinical and economic benefits of digital health solutions. For this report, PHTI reviewed more than 5,000 articles and other evidence, including information submitted by companies with solutions included in the report. PHTI partnered on the report with clinical advisors and experts in health technology, health economics, psychology, psychiatry, and behavioral sciences. The report also included interviews with people with depression and anxiety who use digital health solutions.