Insurance barriers reduce access to mental health treatment

About one-third of psychologists are not accepting any form of health insurance, according to the annual survey. Half of those said they had participated in insurance networks in the past, while only 18% said they have never participated with insurance.

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Among those who have quit insurance networks or never participated with insurance, 82% said insufficient reimbursement rates are a primary obstacle to taking insurance, and 62% said they have encountered administrative challenges including pre-authorization requirements and audits that have dissuaded them from participating, Half said delays in payment played into their decision.

“Psychologists want to work with insurance providers to provide access to patients who must rely on their insurance for their mental health needs,” said Lynn Bufka PhD, APA’s head of practice. “But when a company’s reimbursement rates are too low and the administrative burdens are too high, some psychologists have had to make difficult choices about whether to work with those insurers.”

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These challenges may be exacerbating an ongoing mental health crisis in the country. Demand for mental health treatment continues to soar, but more than half of psychologists said they have no openings for new patients. A similar number said symptom severity among patients is increasing and 44% said their patients are requiring an increased duration of treatment.

“We’ve heard from individual psychologists who have been pressured by insurance companies to cut off care to patients, including those with serious mental illness or at risk for suicide,” said APA CEO Arthur C. Evans Jr., PhD. “Psychologists have spent countless hours tracking down missed payments and lost thousands of dollars in audits that may take place months or years after service is provided. These insurance hurdles are not only hurting psychologists, they are hurting the patients who need care the most.”