The amount of employer-provided private insurance funds spent on mental health services rose by more than 50 percent since the start of the COVID-19 pandemic, according to a recent study. Published in JAMA Health Forum by experts from RAND Corporation and Castlight Health, the study revealed that between January 2019 and August 2022, spending on mental health services by adults with employer-provided private insurance increased by 53.7 percent and utilization rose by 38.8 percent during the pandemic.
The study encompassed services for various mental health conditions including PTSD, major depressive disorder, bipolar disorder, and schizophrenia. This significant expansion in the use of mental health services among adults with employer-based health insurance can be attributed to the changes brought about by the pandemic. However, it remains uncertain whether this trend will continue or return to pre-pandemic levels.
In the early stages of the pandemic, when lockdowns were first imposed, in-person mental health services experienced a decline of approximately 40 percent. However, telehealth services became increasingly prevalent during this period. As the pandemic progressed, in-person services gradually rebounded, with a monthly increase of 2 percent. By the end of the pandemic, in-person mental health visits had reached about 80 percent of pre-pandemic levels.
Despite these positive trends, researchers are unsure if the increase in mental health service utilization will continue. Insurers may begin to push back on the new status quo if higher utilization drives up healthcare spending. This could result in insurers seeking ways to curb costs, potentially leading to less flexibility in using telehealth for mental health services.
The study utilized insurance claims from approximately 7 million adults with employer-based private insurance between January 2019 and August 2022. These claims provided the necessary research data for the study. It is crucial to understand the impact and potential implications of increased mental health service utilization during the pandemic, especially as the healthcare landscape continues to evolve.
In conclusion, the study highlights the substantial rise in spending on mental health services among adults with employer-provided private insurance during the COVID-19 pandemic. While in-person services initially declined, telehealth services played a crucial role in filling the gap. The gradual return of in-person services indicates a positive trend, but the future remains uncertain. Insurers may look to reduce costs, potentially impacting the accessibility and flexibility of mental health services. Further research and analysis are needed to better understand the long-term consequences of these trends and how they will shape the future of mental healthcare.