No. 06
Benefits Economics
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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