Your health insurance plan will cover mental illnesses now, but here's the catch

Mental health issues have become more predominant, especially since the Covid-19 pandemic, due to increased stress and anxiety levels. However, it is still sidelined often due to the stigmas associated with it.

The Insurance Regulatory and Development Authority of India (IRDAI) has made it mandatory for all health insurance policies to cover mental illnesses in compliance with the provisions of the Mental Healthcare Act, 2017. All insurers have been asked to adhere by the rules latest by October 31.

An advocate holding a sign during a 'Walk A Mile In My Shoes' rally at the Michigan State Capitol in Lansing, Michigan, US, on Thursday, Sept. 15, 2022. The rally aims to highlight the need for increased funding for mental health services, raises awareness of behavioral health needs in health and policy discussions and works to banish behavioral health stigmas. (Bloomberg/representative image)

“All insurance products shall cover mental illness and comply with the provisions of the MHC Act, 2017 without any deviation. Insurers are requested to confirm compliance before October 31, 2022,” the latest circular by IRDAI read.

Mental health issues have become a leading cause of concern nowadays – especially since the Covid-19 pandemic – due to increased stress and anxiety levels. However, it is still sidelined often due to the stigmas associated with it.

Just like any physical illness, it is important to take necessary steps to ensure one's mental well-being.

The Mental Healthcare Act, 2017, was passed with ensure all individuals with mental illnesses get the right healthcare and services and to “protect, promote and fulfil” their rights during the delivery of such services.

What will your health insurance plan cover now?

While there is not enough clarity yet, insurance companies will make provisions for mental health problems – like acute depression, bipolar disorder, eating disorders, post-traumatic stress disorder (PTSD), schizophrenia, dementia etc – under any standard health insurance policy, over and above the existing provisions.

As a result, for anyone who needs hospitalisation for in-patient treatment of mental illness, the health insurance plan will cover the cost of the treatment, including medicines, diagnostics, ambulance fees and so on.

Are there any exclusions to the plan?

According to reports, at present, the health insurance plans may not cover mental retardation or intellectual disabilities. Additionally, insurance plans will also not cover drug and alcohol abuse under the current provisions.