What are digital therapeutics and how do they relate to employee benefits?

Digital therapeutics are evidence-based, software-driven treatments for preventing, managing, or treating medical conditions, including mental health issues. In the context of employee benefits, these are apps, platforms, or virtual programs offered by employers to help employees manage stress, anxiety, depression, and other mental health concerns. Unlike traditional wellness apps, digital therapeutics typically undergo clinical validation and may require prescriptions in some cases.

Why are companies investing in mental health benefits for employees?

Companies are recognizing that supporting employee mental health delivers multiple benefits: it reduces absenteeism, increases productivity, lowers healthcare costs, improves retention rates, and enhances their ability to attract top talent. As mental health awareness grows, offering these benefits has become a competitive advantage in the labor market. Studies show that for every $1 invested in mental health support, companies can see a return of $4 or more through improved performance and reduced healthcare costs.

What's the difference between telehealth companies like TDOC and AMWL?

While both provide virtual healthcare services, they have different business models and strengths. Teladoc (TDOC) offers a broader global platform with specialty services including mental health through its BetterHelp brand, focusing on both direct-to-consumer and B2B channels. Amwell (AMWL) primarily partners with health systems and insurers to enable them to offer telehealth services, with a stronger emphasis on integrating with existing healthcare infrastructure. Their approaches to mental health services differ in how they're packaged and delivered to employers and employees.

What are psychedelic-derived treatments mentioned in some of these companies?

Psychedelic-derived treatments refer to therapeutic approaches using substances like psilocybin (found in certain mushrooms), MDMA, or LSD that are being researched for treating conditions like treatment-resistant depression, PTSD, and anxiety. Companies like CMPS and MNMD are developing regulated, medicalized versions of these substances. This emerging field represents a potential breakthrough in mental health treatment, with clinical trials showing promising results for conditions that traditional medications often struggle to address. These treatments would be prescribed by healthcare providers and could eventually be covered by employee health benefits.

15 handpicked stocks

Employee Mental Health As A Benefit

Discover companies transforming workplace wellness through innovative mental health solutions. These carefully selected stocks represent businesses helping corporations attract and retain talent by offering digital therapy, virtual counseling, and wellness technologies as employee benefits.

Han Tan | Market Analyst

Updated 2 days ago | Published at जून 17