Lyra Mental Health Care Delivers Significant Net Health Care Savings

Independent research from Aon, which included all Lyra-related costs, found that a leading Fortune 500 company achieved 60% cost savings for alcohol and substance use disorders, with significant reductions in medical and prescription expenses

September 10, 2024– 12:00 PM ET, BURLINGAME, Calif. — Lyra Health, the leading provider of innovative Workforce Mental Health solutions for employers and health plans, today announced the detailed results of a mental health economics study by global professional services firm Aon. The comprehensive findings reveal that in year one of implementing Lyra’s workforce mental health benefit, a leading Fortune 500 employer saved $4,138 per member on their health plan for those who used Lyra, driven by significant net savings in medical and prescription health plan claims costs. Additionally, the employer had substantially lower spending across the most prevalent conditions impacting health plan expenses, including a 60% cost reduction in spend for members with alcohol and substance use disorders.  

For many organizations, chronic health conditions or complex mental health issues represent a significant portion of their overall health care expenses. Research has shown that 20% of insured members account for a disproportionate 80% of costs, with conditions like alcohol and substance use disorders being key drivers. These substantial costs often arise from inadequate care or disjointed care paths that result in fragmented, inconsistent treatment, leading employees to undergo multiple rounds of increasingly intensive, costly care before progressing toward recovery.

“Without prompt, personalized, and effective care, severe mental health conditions can lead to frequent emergency visits, prolonged hospital stays, and reliance on costly prescriptions,” said Dr. Connie Chen, chief operating officer, Lyra Health. “The report findings prove that these interventions are more frequent and expensive when managed through traditional health plans rather than Lyra’s mental health benefit.” 

By providing timely, evidence-based care, Lyra empowers members to address their mental health challenges early, reducing the risk of escalation to more severe conditions that require costly interventions. Members using Lyra had a significant reduction in visits to the emergency department and mental health-related costs, saving $2,566 across professional, inpatient, and outpatient mental health care. 

High-Quality Care Drives Positive Outcomes and Higher Net Health Care Savings 

The analysis compared health care costs, including the cost of Lyra, over a full calendar year between individuals who utilized Lyra services and a matched control group of individuals from the same employer who did not use Lyra. This direct comparison provides an accurate and comprehensive picture of net health care savings, capturing seasonal fluctuations and including all members, even those with complex health issues. 

Lyra’s rigorous methodology ensures accurate, reliable, consistent, and replicable insights, unlike other vendors that may rely on limited data or selectively exclude certain populations, likely leading to biased results. 

Key findings from the study:

• Lyra delivers mental health care at a lower cost: By establishing a premium network of evidence-based providers and committing significant resources to clinical research, Lyra delivers care that helps people recover faster, with lasting improvement, and at a significantly lower cost than traditional health plans. Members using Lyra had 37% fewer mental health sessions and related office visits as compared to those seeking care through their health plan. 

• Lyra reduces the cost and number of mental health prescriptions: Through personalized, evidence-based care, Lyra helps reduce the reliance on costly prescriptions. On average, Lyra members utilized antidepressants 78% less than non-participants and overall saw a nearly 30% reduction in prescription spending. 

• Lyra significantly lowers spend across most prevalent health conditions: Mental and physical health are undeniably interconnected. When participants received high-quality, evidence-based care for mental health concerns, savings for members ranged from $3,303 to $7,837 across costs for anxiety and mood disorders but also across metabolic and nutritional disorders, including diabetes, and musculoskeletal conditions, including lower back, disc, and joint disorders.

“Our analysis showed a 40% reduction in participant health plan spending in the first year for mental health and non-mental health medical claims and prescription spending,” said Ron Ozminkowski, senior vice president of commercial analytics at Aon. “For users with more complex conditions, the findings show a 60% reduction in employer health plan spending for members with alcohol and substance use disorders.” 

To learn more, download the full Aon report here.

About Lyra Health

Lyra Health is the leading provider of Workforce Mental Health benefits, available to more than 17 million people globally. Lyra is transforming access to life-changing mental health care using AI-powered provider matching, personalized support, and a digital platform to deliver evidence-based support for individuals and teams. Lyra quickly connects members to the largest dedicated global network of evidenced-based mental health providers and well-being tools, to address every mental health need and deliver outstanding positive outcomes that are equitable across diverse racial and ethnic groups. Extensive peer-reviewed published research confirms Lyra’s transformative care model helps people recover twice as fast and a 26% reduction in overall health care claims costs for participants annually. For more information about Lyra Health’s Workforce Mental Health benefits for employers, visit lyrahealth.com.