26 August 2023, Mumbai: The COVID-19 pandemic has triggered a significant increase in spending on mental health services among Americans with private health insurance, according to a recent study conducted. The study reveals that spending on mental health services rose by 53% from March 2020 to August 2022, among a large group of individuals with employer-provided insurance. This trend of increased spending has persisted despite the plateauing of telehealth utilization, raising questions about the future of mental health service delivery.
Key Findings:
Rise in Spending
The study reports a substantial 53% increase in spending on mental health services among Americans with private health insurance during the period spanning from March 2020 to August 2022. This rise in spending was observed in individuals covered by employer-provided insurance.
Increase in Utilization
Alongside the surge in spending, there was a notable 39% increase in the utilization of mental health services during the same period.
Telehealth Usage
The study examined the role of telehealth in mental health service delivery. During the acute phase of the pandemic (March 2020 to December 2020), in-person mental health services declined by 40%, while tele-mental health services saw a remarkable 10-fold increase compared to the previous year. However, during the post-acute period (December 2020 to August 2022), tele-mental health utilization stabilized at roughly 10 times pre-pandemic levels.
Post-Acute Period
As the pandemic progressed and tele-mental health service utilization stabilized, the post-acute period (December 2020 to August 2022) witnessed a gradual increase in spending rates. Although tele-mental health service spending remained stable, in-person care spending gradually increased. The average spending rate during the post-acute period was more than $3.5 million per 10,000 beneficiaries per month, compared to about $2.3 million per month during the pre-pandemic period.
Uncertain Future Trends
The researchers point out that the future trajectory of mental health service delivery remains uncertain. The expansion of payment for telehealth services, which gained traction during the pandemic, faced limitations as some rules expired when the national public health emergency ended in May. This has raised questions about the sustainability of the current trend, especially as insurers may look for ways to curb rising costs associated with increased utilization of health services.
As the study sheds light on the evolving landscape of mental health services during and post the COVID-19 pandemic, it underscores the need to monitor changes in utilization and spending patterns to ensure accessible and effective mental health support for individuals across the nation.
By Yashika Desai