A recent New York Times article entitled “Eating Disorders a New Front in Insurance Fight” highlighted a new battleground in the insurance wars over mandated coverage for mental disorders. According to author Andrew Pollack, there has been an insurance company push-back against managed care mandates by not covering residential treatment for eating disorders or other mental or emotional conditions. The insurance position is that residential treatment is not only expensive but the results are unproven. Many insurers have written residential treatment out of policies and no longer “flex benefits” to allow less expensive residential treatment in place of inpatient care. The result has been an increasing number of denials for residential treatment. At the same time, inpatient treatment, although typically covered by insurance, generally only covers medical stabilization. It does not permit enough time for anorexia nervosa patients to gain sufficient weight to have a hope at recovery or for those with severe cases of bulimia nervosa to gain control of chaotic eating patterns. It has been our experience that the trend toward authorizing fewer treatment days has bled into coverage for Partial Hospitalization Treatment (7 hours a-day, 5-days-a-week). With some insurance companies, we find ourselves arguing daily about whether or not an 80 pound patient should step down to a lower level of care. This is horribly wasteful of the time we would like to be devoting to patient care and it is a source of incredible anxiety to the patient who cannot focus on treatment because of continual worry about whether or not benefits will be precipitously cut off. It is ironic that restricting benefits would be occurring at the time when parity was supposed to solve insurance inequities. The problems with the move to increasingly restrict insurance benefits have clear ramifications for those suffering from eating disorders.
It is very unlikely that a person can actually overcome anorexia nervosa as a result of a brief hospitalization. Weight restoration to an appropriate body weight is a consistent predictor of long-term recovery and this can only be achieved over a period of time and with a high level of nutritional support. Even the best inpatient programs do not achieve a rate of weight gain of more than 2-3 pounds a week. Therefore, if a person needs to gain 20 pounds to achieve a body weight that gives them a reasonable chance of recovery, this will take 7 to 10 weeks- period. The length of stay should be a simple matter of arithmetic and insurance companies should be primarily concerned about whether or not providers are achieving the benchmarks for care .
The “medical necessity” criteria are irrational since the focus should be on the disorder that created the serious medical symptoms. Can you imagine treating diabetes in the same manner? Only treat the diabetic hyperglycemic coma or the kidney damage, but neglect management of insulin and blood sugar levels over time. The medical necessity criteria fail to differentiate the medical severity of the illness (i.e. high death rates, high morbidity) from medical complications (i.e. electrolyte disturbances or orthostatic hypotension). Acute medical complications must be addressed but do not reflect the medical severity and treatment needs of the condition. Rather than simply normalizing electrolyte levels, it is necessary to address the chaotic eating patterns and purging behaviors that underlie these laboratory abnormalities, and this takes time. Managing any chronic condition takes an investment in long-term care and, if this is done responsibly, it saves the insurer money.
Killing the goose that laid the golden egg
Some of the current mess with insurance coverage rests squarely with providers. First, some residential treatment has been so outlandishly expensive that it has led to insurance push-back that has resulted in denials to program that are more economical. If a course of treatment costs $200,000, it becomes a red flag for an insurer. If the same outcome, using objective measures, could be achieved for $25,000, then it is no wonder that insurers are bucking at the exorbitant price tag and refusing to pay. Second, even though it is well known that achieving symptom control and discharging someone with an eating disorder at an appropriate body weight are the best predictors of long-term outcome, some residential programs do not focus on these benchmarks of care. What are the treatment outcomes for each center competing for insurance reimbursement and why are these objective data not readily available to insurance companies so that they can choose the most effective and economical treatments available?
So, where do we go from here? According the New York Times article, the case requiring insurers to cover residential treatment is under review by the United States Court of Appeals for the Ninth Circuit which ruled in August that insurers in California must pay for residential treatment for eating disorders. While this ruling applies only to California law, it is being closely watched all over the country since it may set a very important precedent for other states. In the meantime, it can be very difficult indeed for patients and their families to secure the residential treatment they need while all parties wait for the judicial ruling. One alternative is partial hospitalization since it has been shown that it can achieve excellent results in many cases eliminating the need for residential or inpatient care. However, for children under the age of 18 and who have to travel some distance to get the specialized treatment they need, partial hospitalization is not appropriate since the young person cannot be left in an independent care setting outside of treatment hours.
We have heard many heart-wrenching stories about insurance denials and sharing your own story may help others to cope with the hardships they are facing. If you have a story to tell about your experiences with insurance, please contribute to this blog. Also, to be fair, for those who have incredibly positive insurance experiences, please let us know about this as well. We deal with insurers every day who show competence, kindness and compassion in delivering the care that is needed for those suffering from eating disorders.