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Lyra Health and ParetoHealth: A New Era in Mental Health Care for SMBs

In a significant development for small and midsize businesses (SMBs), Lyra Health, a frontrunner in workforce mental health solutions, has joined forces with ParetoHealth. This partnership aims to extend high-quality mental health care to over 3,500 businesses and 1.2 million individuals, addressing a critical gap in the availability of mental health benefits that typically favors larger corporations.

Understanding the Challenge

According to Kevin Kickhaefer, Chief Revenue Officer at ParetoHealth, more than 60 million Americans work for businesses with fewer than 500 employees. Despite this, many midsize companies cannot afford to offer the comprehensive mental health benefits available at larger firms. The collaboration between Lyra Health and ParetoHealth seeks to change this narrative by harnessing the power of community to provide mental health support that is both efficient and effective.

The ParetoHealth Savings Engine

The key to this partnership lies in ParetoHealth's innovative Savings Engine, designed to help employers tackle the underlying issues driving high health care costs. By leveraging data, analytics, and expert clinical insights, this tool not only cuts unnecessary expenses but also improves health outcomes for employees. Research indicates that transitioning to ParetoHealth can result in cost reductions of 7.5% in the first year and a further 16.5% by the third year, making it a prudent choice for employers looking to manage their healthcare spend.

Mental Health: A Critical Focus

Lyra Health’s role in this collaboration is crucial. As employers grapple with rising mental health concerns among workers, they are realizing the significant financial implications of untreated mental health issues. Studies have shown that mental health conditions contribute to excessive costs through increased healthcare claims. Lyra Health provides prompt access to mental health services, allowing employees and their families to connect with a qualified provider often within a day. This rapid response is pivotal in avoiding exacerbation of mental health issues that might lead to more severe complications, such as emergency room visits.

Proven Outcomes

The effectiveness of Lyra's care model can't be overstated. An independent four-year analysis indicates that organizations utilizing Lyra's services witness a consistent reduction in annual healthcare claim costs. Approximately 90% of members accessing Lyra's services report improvements or recovery, which translates to a significant decrease in high-cost claims, benefiting both employers and employees alike.

Additionally, with appropriate mental health support, employees showcase enhanced resilience, decreasing the likelihood of burnout while fostering a culture of engagement within the workplace. This positive environment not only boosts productivity but also reduces turnover rates, ultimately leading to a healthy bottom line for businesses.

A Shared Vision

Sean McBride, Chief Revenue Officer at Lyra Health, emphasizes the shared vision of both companies, stating, “Small and midsize businesses care deeply about their people, but too often the cost and complexity of benefits have held them back. Together with Pareto, we are removing those barriers.” This commitment aims to reshape how quality mental health care reaches employees efficiently and affordably.

About ParetoHealth

Founded on the premise that traditional health insurance often fails small and midsize employers, ParetoHealth creates a robust community for companies with 50 to 1,000 employees. By bringing these businesses together, ParetoHealth fosters a collective approach to health benefits, promoting cost reduction and stability.

With over 3,500 employers in its network, representing 1.2 million individuals and managing healthcare expenditures of over $6.8 billion, ParetoHealth is redefining health insurance for small businesses.

About Lyra Health

As a leading provider of mental health solutions globally, Lyra Health caters to more than 20 million individuals with a mission to transform access to essential mental health care. By utilizing its unique, AI-powered platform, Lyra connects members swiftly with a global network of evidence-based providers, ensuring effective and equitable outcomes for all.

For more information on how this partnership can benefit your organization, visit paretohealth.com and lyrahealth.com.