Why mental health insurers fail 2023


In the aftermath of the COVID-19 pandemic, which caused sickness, death, social upheaval, and economic problems, the United States is currently dealing with a crisis that is ongoing in terms of mental health.

Despite the passage of important regulations designed to ensure that mental health treatments are covered by health insurance, access to mental healthcare continues to be hindered by persistent gaps in coverage.

According to the findings of a poll conducted by the advocacy organization Mental Health America, more than twenty percent of adult residents of the United States have self-reported having mental diseases in this past year. 55% of the people said that they were unable to get treatment for their condition.

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A large aspect of the issue is that there is a stigma attached to seeking treatment for mental and behavioral health issues, in addition to the fact that there is a practitioner shortage.

Which mental health therapy should private insurance cover?

However, despite the existence of coverage parity rules, health insurance coverage for mental healthcare is not on par with coverage for other types of treatment. This is especially true when considering the number and range of physicians who participate in provider networks.

What follows is important information on the coverage of mental healthcare by various types of health insurance:

In 1996, large-group insurers were required under the Mental Health Parity Act, which was adopted under the leadership of President Bill Clinton, to treat mental health in the same manner as physical health in terms of coverage and benefits.

Prior to its enactment, insurers frequently established distinct, higher deductibles for mental health treatment, restricted the amount of visits to a behavioral health professional that a patient may have in a given year, and refused to pay care received from providers who were not in their network.

In 2008, Congress passed an amendment to the statute that extended parity standards to cover treatment for substance-use disorders.

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