ABLECHILD: Mental Health Parity Runaway – How Expanding Coverage Is Bleeding Insurers Dry with No Proof of Patient Recovery
Mental Health Parity Runaway: How Expanding Coverage Is Bleeding Insurers Dry with No Proof of Patient Recovery
Republished with permission from AbleChild.
Connecticut’s attempt to further expand mental health parity through its recent legislative proposal highlights a critical and growing challenge for health insurers—one that threatens the financial stability of the entire insurance industry. Over the past decade, insurers have been mandated to provide mental health and substance use disorder coverage on par with medical and surgical benefits, but this policy has come at a steep and ever-increasing cost.
Health insurance companies have effectively been held hostage by the behavioral health industry, which continues to add new diagnostic labels and expand the criteria for coverage. As more conditions are recognized and more treatments are demanded, insurers face escalating claims without any clear evidence that these interventions are producing better outcomes for patients. In fact, despite years of increased spending and expanded coverage, there is no verifiable data showing a meaningful rise in the number of people who actually recover or experience significant improvement from mental health treatments.
The financial consequences for insurers are profound. Mental health parity laws have led to a surge in claims and payouts, with no end in sight as the behavioral health sector grows. The Connecticut Office of Health Strategy and other industry reports show that behavioral health costs are rising faster than other healthcare expenses, and the disparity between behavioral and physical health spending continues to widen. Insurers are forced to absorb these costs, which in turn drives up premiums for all policyholders and reduces the industry’s capacity to invest in other areas of care.
Moreover, insurers are increasingly liable for the outcomes of treatments that lack objective, biological markers or proven efficacy. When adverse events, including suicides, occur during or after treatment, insurance companies are left to cover the financial fallout, even as the scientific basis for many interventions remains contested.
The defeat of Connecticut’s latest parity bill is a necessary reprieve. The industry cannot sustain unchecked expansion of coverage for mental health conditions that are defined more by consensus than by science. It is time for policymakers to re-examine mental health parity laws based on rigorous evidence, not just political pressure or industry lobbying. Without such scrutiny, insurers will continue to face mounting losses, and the promise of improved mental health outcomes will remain unfulfilled.
AbleChild is a 501(3) C nonprofit organization has recently co-written landmark legislation in Tennessee, setting a national precedent for transparency and accountability in the intersection of mental health, pharmaceutical practices, and public safety.
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They have proof the jab is still killing people (see Embalmers study continues to find clots since 2020, 25% of infant death) but that does not matter either where Pharma profit is concerned.