Rising anxiety resulting in $14 billion in medical costs, Cigna finds

Anxiety has emerged as a pervasive health challenge, and has resulted in about $13.9 billion in additional costs, according to a new report commissioned by the Cigna Group.

An analysis of Evernorth claims data showed a 20% increase in the prevalence of diagnosed mental and behavioral health conditions between 2020 and 2024, and 14% of the insured population has now been diagnosed with anxiety by a mental health professional. 

These individuals account for almost $14 billion in medical, behavioral and pharmacy expenses, data showed, representing a disproportionate 27% of the total cost of care. And the prevalence of anxiety may be higher due to a lack of formal diagnosis by self-identifying individuals. 

WHAT'S THE IMPACT 

In addition to mental health professionals and the behavioral healthcare system, employers feel a significant portion of the impact of widespread anxiety, as Cigna's research showed the condition has an effect on job performance and self perception.

For example, 70% of employees felt capable in their roles, compared to 55% of those with diagnosed anxiety disorders reporting the same. Workers with anxiety also reported a less positive employee experience and lower job satisfaction.

And since workers with anxiety tend to find their work more stressful and demanding, they’re twice as likely to feel burned out, the report found. That in turn can lead to higher rates of turnover: About 43% of employees with burnout plan to find a new job within a year, whereas just 20% of those without burnout plan to look for other work. 

Workers with anxiety also are more likely to feel misunderstood at work, and are less likely to feel safe and included.

Compounding the issue for employers is lower utilization of behavioral healthcare, particularly among younger workers. Behavioral healthcare – including therapy, counseling and psychiatry – saves money for both the patient and the employer, Cigna found. Evernorth claims data showed patients receiving behavioral outpatient care saved an average of $2,565 in health-related costs over 15 months.

This lower utilization could be due in part to a generational gap in health insurance literacy, the report found. Less than half of Gen Z and millennial workers with employer-provided medical coverage say their employer also provides mental/behavioral health coverage, yet 89% of employers report offering mental health coverage – suggesting many younger workers don’t fully understand their benefits.

THE LARGER TREND

The best ways for employers to support their workforce, according to the report, are to cultivate a workplace culture that prioritizes supportive relationships, and to provide accessible tools and resources that help employers feel more capable in their jobs.

Workers with anxiety who feel understood on the job have markedly higher levels of self-confidence and report far lower levels of stress and burnout than their counterparts who feel misunderstood, authors said. 

Team-building activities are an effective way to help employees make connections and build stronger relationships, but social interactions can be difficult for people with anxiety, as they’re more likely to opt out of participating. Managers should be aware of this challenge and be supportive and inclusive, the report found.