The number of psychiatrists accepting Medicare has dropped significantly over the past decade, raising concerns about access to care for patients. Medicare supports older adults and individuals with disabilities, who may be at unique risk for mental and behavioral health challenges.
The US has long dealt with a shortage of psychiatrists; and efforts to increase the numbers of mental health practitioners have not proven successful in meeting the needs of people living with mental health conditions. A new study revealed that despite a 22% increase in active psychiatrists, participation in Medicare Part B declined by 16% from 2014 to 2022.
Low Reimbursement Rates Drive Psychiatrists Away
Many psychiatrists don’t accept insurance at all, and those who do may opt out of Medicare due to reimbursement that is lower than cash payments and commercial rates. Sometimes, it can take months to receive payment for those insured by Medicare. Given this, the more Medicare patients psychiatrists take on, the more difficult it can become to financially sustain their practice.
Many providers report that accepting Medicare is simply not financially viable, forcing them to limit the number of patients they take or leave the public insurance network entirely. As a result, fewer psychiatrists are available to meet the growing demand for care.
Patients Face Longer Waits and Limited Options
With fewer psychiatrists accepting Medicare, many patients are forced to wait weeks or months for an appointment, or to travel significant distances to find an available provider.
Mental health challenges, by nature, can make both waiting and traveling more difficult, and untreated mental health conditions can deteriorate rapidly. Many are left with no choice but to seek care from overburdened emergency departments or risk going without treatment.
Reforms Could Ease the Crisis
Expanding access to psychiatric care is possible with deliberate policy changes, such as ensuring equal reimbursement rates for both psychiatric and physical services. The Biden Administration previously committed to establishing payment parity for mental health services, but strong implementation efforts must follow.
Without action, the gap between mental health needs and available care will continue to grow, leaving some of the most vulnerable without access to essential treatment.
