Employers Plan More Mental Health Spending in 2027
Most benefits leaders expect to expand workplace mental health coverage as AI reshapes jobs and daily work.
Updated on Nov. 3, 2026 in Mental Health
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Lyra Health released its seventh annual Workforce Mental Health Trends Forecast, based on a survey of more than 500 HR and benefits leaders at US-based organizations with 500 or more employees. Most of those leaders plan to spend more on mental health benefits in 2027.
Why it matters
Benefits leaders are framing expanded mental health coverage as both a cost-containment and productivity measure, as employers face a projected 9.2% rise in healthcare costs for 2027. Their concerns about AI-driven job insecurity, ongoing change, and loss of human connection suggest workplace mental health pressures are rising alongside technological disruption.
The findings come from a survey of more than 500 HR and benefits leaders at US-based employers with 500 or more workers, reported as a seventh annual forecast. Figures include 73% of employers reporting higher mental health service use and a projected 9.2% median healthcare cost increase for 2027, but the survey captures leader perceptions rather than measured workforce health outcomes.
The players
Lyra Health
Lyra Health is a behavioral health company that provides employer-sponsored mental health benefits and care navigation services.
Business Group on Health
Business Group on Health is a national employer advocacy organization that publishes annual surveys on employer healthcare costs and strategy.
The details
Benefits leaders told Lyra that job insecurity and displacement (57%), ongoing change stress (57%), and loss of human connection (54%) are their top concerns as AI reshapes work. Nearly half of leaders at large multinational organizations said AI and rapid technological change are negatively affecting workforce mental health. Eighty-four percent said workforce mental health needs more than simple access to services, and half said they feel unprepared to address children's mental health.
Timeline
August 2026: Business Group on Health released its 2027 Employer Healthcare Strategy Survey.
2026: Business Group on Health survey reported rising mental health service utilization.
November 3, 2026: Lyra Health published its seventh annual Workforce Mental Health Trends Forecast.
2027: Most benefits leaders plan to increase mental health benefit spending.
Health Landscape
Employers are reporting sustained growth in mental health service use, with 73% citing increased utilization in the Business Group on Health's 2026 survey. Lyra's forecast suggests that employer spending is being redirected toward mental health as a cost-containment tool amid a projected 9.2% rise in healthcare costs for 2027.
If your employer is expanding mental health benefits in 2027, it may be worth reviewing what services are covered and how to access them. Anyone experiencing job-related stress, change fatigue, or social isolation may find it useful to raise these concerns with a primary care clinician or therapist.
The takeaway
Workplace mental health is increasingly tied to how employers handle AI-driven change, and benefits leaders are signaling more investment. If you feel strain from job insecurity or constant change, talking with a clinician about support options is a reasonable next step.
Further reading
Explore more on Mental Health and how workplace pressures are shaping employee wellbeing.
Source note: This article includes information reported by Insurance Business.
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