Slipping under the radar last week was an announcement that could have major implications for the future of the psychedelic medicine industry.
Novamind is a company that “provides ketamine-assisted psychotherapy and other novel treatments through its network of Cedar Psychiatry clinics and operates Cedar Clinical Research” — and they’ve announced that Blue Cross and other insurers were added to a list of insurance companies covering ketamine treatments at their facilities.
Currently the only legal psychedelic drug being prescribed in North America, ketamine treatments are growing across the continent, with networks of treatments expanding across the continent. Ketamine has its own potential benefits for a variety of conditions, so acceptance by the insurance industry is an important piece of progress for those looking to gain access to mental health treatments.
Ketamine is a real-world test case for the future of legal psychedelic therapy, so this bit of relatively un-sexy news has implications beyond the ketamine space. If Ketamine clinics can continue to prove themselves as viable commercial endeavors, and if Ketamine companies can continue to lay the groundwork for acceptance of psychedelics by insurance providers, then future psychedelic compounds will have an easier time navigating the difficult early years of regulatory approval.
Having psychedelic therapy accepted by insurers is a major potential bottleneck for widespread acceptance and greater access, so headlines like this one are important stepping stones on the path forward.
See below for a look at the complete press release:
Novamind Secures Insurance Coverage for Ketamine from Four Major Payors
Blue Cross added to list of insurance companies covering IV ketamine treatments at Novamind
TORONTO, ON / ACCESSWIRE / November 10, 2021 / Novamind Inc. (CSE:NM)(OTCQB:NVMDF)(FSE:HN2) (“Novamind” or the “Company”), a leading mental health company specialized in psychedelic medicine, is pleased to announce that it has obtained approval for direct billing of intravenous (IV) ketamine for treatment-resistant depression (TRD) from four major health insurance providers: Blue Cross Blue Shield, the University of Utah, PEHP Health & Benefits and MBA Benefit Administrators.
Ketamine has been safely used as an FDA approved anesthetic since 1970 and has found use in psychiatry to treat conditions including TRD. Novamind administers ketamine in conjunction with psychotherapy, also known as ketamine-assisted psychotherapy. Preliminary evidence suggests that when ketamine intervention is enhanced with therapeutic support, it may produce enduring benefits across a range of mental health disorders.1 While most insurance companies cover psychotherapy portions of this treatment, when used “off label” for psychiatric disorders, coverage for ketamine has typically been less common.
“This initial success with insurance coverage of ketamine is promising for the future of psychiatry because it sends a strong signal that payors are interested in more effective treatments for mental health conditions as supporting research emerges,” said Dr. Reid Robison, Novamind’s Chief Medical Officer. “For ketamine therapy to reach the masses, many more insurance companies will need to adjust their coverage policies. I look forward to further informing these decisions by soon publishing the results of real-world evidence studies and hosting upcoming clinical trials examining the use of psychedelic-assisted psychotherapy.”
For many medical and prescription drug plans, prior authorizations from insurance companies are required in advance of administering certain treatments-including IV ketamine for depression. To support the rapid growth of its clinic network, Novamind opened a dedicated call centre specialized in insurance benefit verification and prior authorizations. Dr. Robison noted that for patients, that means faster approval times and quicker reimbursements.
About Novamind
Novamind is a leading mental health company enabling safe access to psychedelic medicine through a network of clinics and clinical research sites. Novamind provides ketamine-assisted psychotherapy and other novel treatments through its network of Cedar Psychiatry clinics and operates Cedar Clinical Research, a contract research organization specialized in clinical trials and evidence-based research for psychedelic medicine. Both Cedar Psychiatry and Cedar Clinical Research are wholly owned subsidiaries of Novamind. For more information on how Novamind is enhancing mental wellness and guiding people through their entire healing journey, visit novamind.ca.
