Sun Life Data Shows Mental Health Claims Have Grown 3.5-Fold Since 2019, With Younger Workers Driving Demand
Sun Life reports that mental health-related claims on group benefit plans have risen roughly 3.5 times since 2019, with younger employees accounting for much of the growing demand for psychological and paramedical support. The trend signals a lasting shift in how workplace benefit plans are designed and used across Canada.
What happened
Sun Life has reported that mental health claims on group benefit plans are now about 3.5 times higher than they were in 2019, with younger workers — largely millennials and members of Generation Z — leading the increase in demand for mental health support. The insurer's findings point to a sustained rise in usage of psychological services, counselling and related paramedical coverage within workplace benefit plans rather than a short-lived spike tied to the pandemic years.
What it means for consumers
The data suggests employees are far more willing than in the past to use the mental health coverage available through their group plans, and that younger workers in particular treat counselling and psychological services as a core part of the benefits they expect. For plan members, that translates into heavier reliance on paramedical limits and employee assistance programs, and a greater likelihood of hitting annual maximums before the year is out. For anyone comparing coverage — whether through an employer plan or an individual policy — mental health and paramedical limits are becoming one of the more consequential features to check, alongside wait periods and whether a practitioner must be a licensed psychologist, registered counsellor or social worker.
What it means for premiums
No direct premium change has been announced.
Coverage considerations
Rising utilization tends to push plan sponsors to revisit how mental health benefits are structured. Consumers may see employers adjust annual paramedical maximums, introduce or expand employee assistance program sessions, add virtual therapy options, or require that practitioners hold specific designations before claims are reimbursed. Some plans could move toward combined health spending accounts, which give members flexibility to allocate dollars between psychological, physiotherapy and other paramedical services. Employees should review whether their current coverage includes a separate mental health limit, how many sessions are covered per year, and whether there is a waiting period for new hires or newly enrolled dependents. Those who expect to need ongoing counselling should confirm in advance what documentation or referral is required, since reimbursement rules vary considerably between carriers and plan designs.
Cities affected
This section is omitted because the source material reports a national insurer trend and does not provide city-specific evidence.