Biden Administration Finalizes Rule To Expand Mental Health Care Access: How This Could Impact The Psychedelics Industry
In a significant step toward improving mental health care access, the Biden administration announced a final rule on Monday aimed at ensuring mental health and substance use disorder treatment is covered at the same level as physical health care in private insurance plans. As reported by CNN, the rule is set to take effect for most group health plans and insurance issuers starting in January 2025.
Under the new rule, insurers must provide parity between mental health and physical health coverage, eliminating bureaucratic hurdles that have historically restricted access to mental health care. This move could include expanding the number of mental health professionals in insurance networks and reducing paperwork burdens on providers.
“Mental health care is health care,” said President Joe Biden in a statement. “There is no reason that breaking your arm should be treated differently than having a mental health condition.”
Closing Gaps In Mental Health Care
The rule builds on the 2008 Mental Health Parity and Addiction Equity Act (MHPAEA), which mandates that insurance plans cover mental health care at the same level as physical health care. However, access to in-network mental health care has remained limited, with many Americans forced to pay high out-of-pocket costs. Neera Tanden, White House Domestic Policy Advisor, noted that the rule aims to fix this, ensuring that Americans no longer face excessive costs to get the mental health care they need.
The rule mandates that insurers assess their coverage in several key areas, including provider networks, out-of-network payment policies and prior authorization processes. According to the administration, these changes could affect up to 175 million Americans with private insurance.
Additionally, the rule closes a loophole that previously exempted federally provided health insurance plans from complying with MHPAEA. This change is expected to improve mental health care access for 120,000 additional consumers.