Does Your Health Insurance Policy Cover Treatment of Mental Illness?

Does Your Health Insurance Policy Cover Treatment of Mental Illness?

Due to the Covid-19 pandemic, there has been a rise in economic struggles and people have lost their jobs. This increase in stresses and negative triggers has resulted in a rise in mental health issues. If a person is physically ill, there are insurance plans that cover expenses. Likewise, health insurance also covers mental illness. Let us understand this in detail:

According to a World Health Organisation (WHO) report, close to 0.8 million people take their lives due to mental illness which accounts for one death every 40 seconds across the globe. Mental health includes the psychological, social as well as emotional well-being of a person. This has an impact on how a person behaves, thinks, acts, or feels and it is very important to acknowledge mental health. When a person suffers from mental illness their ability to think, act, take decisions is affected.

Does Health Insurance Cover Mental Illness? 

Earlier people did not realize the importance of paying attention to one’s mental health. This was something that most people shrugged and avoided but, thanks to all the awareness that is being created, the insurance companies have also begun to cover mental illness amongst insurable conditions. The Insurance Regulatory and Development Authority of India (IRDAI) made it mandatory for all insurance companies to cover mental illness under health insurance in August 2018. It has been instructed that mental illness should be treated just like any physical ailment in health insurance policies.

Benefits of Mental Health in Insurance

  • The coverage benefits are like that of a normal health plan. It covers the following:
    • In-patient hospitalization charges
    • Treatment costs
    • Diagnostic tests
    • Medicine costs
    • Ambulance charges
  • The policy covers those suffering from mental disorders that affect their cognitive abilities, memory, thinking, behaviour, and decision-making skills
  • Some insurance companies offer OPD benefits that cover consultation costs, counselling costs, and rehabilitation costs to treat the mental illness

The Disease That Is Covered

  • Acute depression
  • Obsessive-Compulsive Disorder (OCD)
  • Bipolar Disorder
  • Schizophrenia
  • Post-Traumatic Stress Disorder (PTSD)
  • Anxiety disorder
  • Dementia
  • Psychotic disorder
  • Attention Deficit or Hyperactivity Disorder (ADHD)

What Mental Health Insurance Does Not Cover

  • Out-patient consultation
  • Mental illness that is caused due to alcohol or drugs
  • Recurring mental condition due to not following the prescribed treatment or medications

Who Should Buy This Cover? 

The current times are very stressful and as per a recent report of the WHO, 1 in 20 people are said to be suffering from some sort of mental illness. In 2020 alone, about 7.5% of the population suffered from mental illness. Therefore, every individual must buy mental health insurance for themselves whether it seems necessary or not. People who have a family history of mental illness, those who have gone through trauma in the past, people who have lost their loved ones suddenly should consider buying this cover.

The waiting period for these policies differs from one insurer to another but, mental health insurance will certainly reduce the financial burden if anything unfortunate occurs. Read the terms and conditions of a policy before signing insurance papers and to know more about health insurance plans, click here!