Lyra Health: Impact on Healthcare Spending (2018–2021)
Summary of Aon’s Independent Actuarial Analysis
What We Did
Aon conducted a comprehensive analysis of three large employers who implemented Lyra Health’s Workforce Mental Health Program (WMHP) from 2018 to 2021. The study evaluates the impact of Lyra’s mental health services on overall medical and prescription drug spending across multiple employer groups.
Key Findings
The results show that participants in Lyra’s program experienced significantly lower healthcare costs compared to non-participants. Here’s a summary of the key insights:
- $1,978 lower healthcare spending per participant, on average, per year (PPPY) over the 4-year period.
- Participants used 12.3 mental health office visits per member per year—a significant increase compared to non-participants, who only used 4.5 visits.
- Significant reductions were observed in:
- Mental health claims
- Prescription drug spend
- Emergency department visits
Efficiency Metrics
Participants demonstrated a consistent lower cost profile in both medical and prescription drug spending compared to non-participants:
| Year | Participants | Non-Participants | Difference (PPPY) |
|---|---|---|---|
| 2018 | $4,993 | $7,264 | -$2,271 |
| 2019 | $5,713 | $7,449 | -$1,736 |
| 2020 | $5,615 | $7,189 | -$1,574 |
| 2021 | $6,547 | $8,877 | -$2,330 |
Mental Health Utilization
Participants in the Lyra WMHP program had substantially higher utilization of mental health services, shifting from traditional medical claims to Lyra’s specialized services. This helped reduce medical plan costs while improving access to mental health care.
Prescription Drug Spending
Prescription drug spending was significantly lower for participants in the study, with a $695 per member per year reduction observed in 2021 alone.
Age Group Insights
The study also revealed that younger age groups (under 40) saw the largest cost differences, particularly among those under the age of 18.
Why It Matters
This analysis provides compelling evidence of the cost savings and improved health outcomes driven by Lyra Health’s mental health services. By integrating mental health care into the healthcare system, Lyra has helped employers reduce overall spending while providing employees with better access to mental health resources.
- Cost savings for employers: Reduced claims and spending on medical, mental health, and prescription drug costs.
- Better mental health outcomes: Increased utilization of mental health services among employees, leading to healthier outcomes.
Interested in Learning More?
If you’d like to see a detailed report or learn more about how Lyra Health’s Workforce Mental Health Program can drive savings and improve health outcomes for your employees, contact us or download the full report below.
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