A step forward for mental health patients

Mental health insurance covers only hospitalisation. That should change

In a first for India, medical insurance for the treatment of mental illnesses will be available as in cases of physical illnesses, Union health minister J P Nadda announced on Twitter on August 19. Three days before Mr Nadda’s tweet, the Insurance Regulatory and Development Authority of India (IRDAI) had issued a directive that asked insurance companies to make provisions to cover mental illnesses in their policies along with physical illnesses. India’s progressive mental health legislation, the Mental Healthcare Act, 2017, kicked in on May 29 this year. According to the Act: “Every insurer shall make provisions for medical insurance for treatment of mental illness on the same basis as is available for treatment of physical illness.”

Both the IRDA directive and Mr Nadda’s announcement are steps in the right direction. This will benefit patients as well as help create awareness about mental health issues. According to the World Health Organization, with more than 300 million people suffering from it, depression is the leading cause of disability and a major contributor to the global burden of disease. In India, according to the National Mental Health Survey, 2016, an estimated 150 million people require mental health interventions.

Although mental health experts have welcomed the announcement, a few anomalies need to be addressed. The insurance market in India is yet to evolve when it comes to outpatient treatment. Typically, most health insurance policies pay only for hospitalisation. So, a policy is likely to cover the patient if the person is hospitalised owing to a mental illness but not cover counselling fees for a psychiatrist. Only a small fraction of those with mental health ailments need hospitalisation. Once insurance firms switch to underwriting outpatient costs, it could encourage people to seek help and reduce the stigma.