Is “Ghost Networks” Lawsuit Against Insurance Companies the Failure of Mental Health Parity?
November 7, 2024
It is of interest that a class action lawsuit has been filed in New York which alleges that insurance companies are deliberately harming patients because the directories of listed physicians and professionals are non-existent, a proverbial “ghost network.” The suit further alleges that “there is a mental health crisis in this country and in this state” and the provider directory, the “ghost network,” is “exacerbating patients’ mental health problems” because they can’t contact providers for services needed.
While there are many issues that AbleChild could address about this lawsuit, two problems come to mind. First, whether there is a “mental health crisis,” and who is responsible, is up for debate and, secondly, it seems to AbleChild that this lawsuit is simply an end-around to obtain increased pay for mental health providers, which is being addressed in many states’ Medicaid oversight boards and commissions.
First, the suit alleges that the insurance companies have “mislead” patients by “publishing grossly inaccurate directories of doctors and therapists.” The suit further alleges that these “grossly inaccurate directories” list doctors and qualified professionals who are not within the insurance network – “Ghost Networks.” These “Ghost Networks” “that are replete with errors and duplications, which make them inaccurate, incomplete, deceptive, and misleading” are more likely to be found in Mental Health provider directories.