Will Insurance Pay for Psychedelics? — Funding Psychedelic Therapy

Will Insurance Pay for Psychedelics? — Funding Psychedelic Therapy

Psychedelics, such as psilocybin-containing mushrooms and LSD, are becoming increasingly popular. While they induce intense psychedelic trips, that’s not the main reason for their recent popularity. Psychedelics have shown promise in treating complicated mental health issues — from depression to PTSD. When used as therapeutic tools, psychedelic drugs can produce outstanding results in patients that have tried everything else. People suffering from addiction, PTSD, anxiety, depression, and other mental illnesses report life-changing results after using psychedelics. But this emerging therapy comes with a hefty price tag. This raises the question, “Does insurance cover psychedelic-assisted therapy?” We’ll answer that question and look at how you may be able to fund treatment with psychedelics.

Are There Any Insurance Providers That Cover PAP Treatment?

Psychedelic-assisted psychotherapy (PAP) involving substances such as MDMA, psilocybin, and LSD is still illegal in most countries — but things are about to change. Ketamine therapy is already legal in Canada and the US, and MDMA-assisted therapy is on the verge of legalization in the US. At the moment, just a few insurance companies cover some of the cost of ketamine therapy (such as Blue Cross Blue Shield, Cigna, Veterans Affairs, and United Healthcare) but stringent terms apply and coverage is only available for select clinics in select states. No insurance companies currently cover the cost of MDMA, LSD, ibogaine, or psilocybin treatments in the US. We expect this to change as the legal status of PAP involving other substances becomes legalized in the coming years.

Insurance Coverage for Ketamine Treatment

An intranasal ketamine-derivative spray called Spravato was approved by the FDA back in 2019. This spray was designed for patients with treatment-resistant depression. The list price for this substance sits at $590 to $890, but the costs of the initial treatment sessions ($4,000 to $6,000) and subsequent treatments ($2,000 to $3,500) push the overall cost up. Some insurers will cover the cost of ketamine treatment involving Spravato or IV ketamine therapies — but they’re few and far between. If you wish to undergo this treatment, contact your insurer first or find an insurer that will cover the costs. Your insurer could cover the entire cost, part of the cost, or reimburse your out-of-pocket expense — depending on their specific policy (if any) on the ketamine-based treatment.

Insurance Coverage for Psilocybin Treatment

Unfortunately, it’s highly unlikely that you’ll find an insurance company to cover the costs of psychedelic-assisted therapy involving psilocybin. This is a controlled substance in the US, and your only hope of receiving legal treatment is to be part...

Alternative Ways to Fund Psychedelic-Assisted Therapy

1. HSA/FSA Accounts

2. Out-of-Network Benefits

3. Low-Interest Financing

What is Psychedelic-Assisted Psychotherapy?

1. The Preparation Stage

2. The Psychedelic Experience

3. The Integration Stage

Who Can Psychedelic-Assisted Therapy Help?

How Much Does Psychedelic-Assisted Therapy Cost?

Psilocybin & MDMA Treatments

Ketamine Treatments

The Future of Psychedelic-Assisted Therapy & the Health System

A Final Word: Will Your Insurance Pay for Psychedelic Treatment?

Psychedelic therapy holds promise for those struggling with mental health conditions, but the current landscape of insurance coverage for such treatments is limited. While some insurers may cover ketamine therapy to a certain extent, coverage for other psychedelics like psilocybin remains scarce. As regulations evolve and more research supports the benefits of psychedelic-assisted therapy, there’s hope for expanded insurance coverage in the future. Until then, exploring alternative funding options and staying informed about changing policies can help individuals access the mental health care they need.

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