Summary

State and federal regulators are failing to address “ghost networks” in health insurance, where insurers list unavailable mental health providers as in-network, misleading patients and denying them critical care.

Investigations in states like New York, Arizona, and California found error rates as high as 86%, but enforcement is weak, with few fines issued and penalties too small to deter violations.

This issue is significant because it worsens the mental health crisis, undermines trust in the system, and has led to tragic outcomes, including preventable deaths.

Efforts to strengthen regulations face political resistance and underfunding.