No. 06

Benefits Economics

The Third Model.

The mental health benefits category has tried two pricing models. PEPM rewarded vendors when usage stayed low. Fee For Service fixed that — and shifted engagement risk to the employer's P&L. A third model resolves both.

Author

Alexa Varsavsky

Published

June 2026

Read time

20 min

2–5%

Traditional EAP utilization, sustained for over a decade

SHRM / Mercer / NBGH / Gallup

25%+

Utilization the largest digital mental health vendors publicly report today

Vendor-published

600%

Utilization increase the same vendors cite for customers switching from legacy EAPs

Vendor-published

18–36 mo

Expected timeframe for PPPM-style structures to spread in mental health benefits

Per consultant conversations, 2026

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