Health Insurance Plans and Their Impact on Mental Well-being

We know that mental health and physical well-being are interlinked. Yet, mental health concerns are often swept under the rug. They are largely considered a taboo subject, but things are getting better slowly. There is more talk about mental health issues and finding practical solutions for those who are suffering from such issues. One such solution comes in the form of health insurance plans. With the introduction of coverage for mental health in health insurance plans, some of the obstacles facing those who want to opt for treatments have been removed. Here’s how health insurance plans have had an impact on mental well-being in the country. 

Are mental health issues covered by health insurance?

For a long time, mental well-being remained very underserved by the health insurance sector, which focused primarily on physical ailments. But this changed in the late 2010s. Treatments for mental health conditions started getting covered under health insurance from then on. Insurers were legally obliged to provide coverage for mental health care under the Mental Health Act, 2017, and the IRDAI mandate supporting the same. Insurers now provide coverage for conditions such as acute depression, bipolar disorder, anxiety disorders, schizophrenia, and mood disorders, to name a few.

What is the impact of health insurance plans on mental well-being?

1. Access to mental health care

Sometimes, it is not only the stigma attached to mental health that may stop you from taking the steps necessary to protect it. Lack of means to access the right experts and treatments can also hinder your progress. Health insurance plans allow you to access care in the form of inpatient treatments and many other forms of care, which can encourage you to get the treatments you need the most. This leads to better outcomes for your mental health and overall well-being.

2. Financial protection

Lack of finances can also stop you from addressing your mental health issues. Hospital visits can be expensive. Mental health care is never a one-time event and often requires long-term care. These costs can add up. And in most households, physical ailments would be given more priority over mental ones to begin with. Medical inflation is also showing no signs of letting up. All these factors can make it difficult to seek out help. With a good health insurance plan that supports your mental health needs in place, your finances and your mental health will get the protection they need.

3. Early intervention

As with physical health, early intervention plays a crucial role in mental health as well. It can, in fact, be the factor that ultimately saves lives. The more mental health issues are allowed to fester, the longer the road to recovery becomes. With a health insurance plan and the access it provides, early intervention with diagnosis and treatment is a very real possibility. This paves the way for good results in the long run. 

4. Holistic approach

Mental health can have an impact on your physical health and vice versa. By giving priority to both sides of the wellness coin, insurers are seeking to provide holistic solutions to policyholders. This also works towards removing the stigma attached to seeking treatments and normalises discourse surrounding mental health issues. 

Factors you need to look out for in a policy

1. Inclusions and exclusions: You should review a health insurance policy with a fine-tooth comb, especially when it concerns mental health care. Know the inclusions and exclusions like the back of your hand. This will help your claims process immensely and reduce your out-of-pocket spending. For example, most insurers provide coverage only for inpatient treatments, and outpatient treatments, such as counselling sessions, may not get coverage. Here are some of the common exclusions to look out for:

1. Treatment for mental retardation
2. Mental illness is linked to alcohol and drug abuse 
3. History of recurring mental illness

2. Waiting period: If your mental health issue is a pre-existing condition, the health insurance company will apply a waiting period on it before coverage can be claimed. Waiting periods can range anywhere between 1 and 3 years, and any claims related to a pre-existing condition will be rejected by the insurer during this period.

3. Claim settlement ratio: Insurers need to have a high claim settlement ratio. A low claim settlement ratio indicates that the insurer may not be entertaining claims in an authentic manner, and the chances of your claims getting rejected are high.

Conclusion

While the inclusion of mental health coverage in health insurance plans is a great and welcome move, there are still issues, such as outpatient care, that need improvement. But health insurance plans are also constantly evolving and becoming more inclusive of policyholders who need mental health coverage. This bodes well for the future of mental health care in the country.