Mental Health Parity in India: Analysing the Compliance of Insurance Providers with the Mental Healthcare Act, 2017

Abstract

Mental health disorders have long been neglected within India’s healthcare and insurance frameworks. The Mental Healthcare Act (MHCA), 2017, sought to address this disparity by mandating equal treatment of mental and physical illnesses under health insurance policies. This study examines the extent to which Indian insurance providers have complied with these provisions, assessing policy inclusions, exclusions, and claim processes. Using a mixed-methods approach, this research analyses insurance policy documents, interviews with stakeholders (insurers, healthcare professionals, and policyholders), and available secondary data. Findings suggest that while there has been notable progress in the inclusion of mental health coverage, significant gaps remain in policy awareness, claim processing, and accessibility. Many insurers impose conditions that hinder effective mental health parity, such as high waiting periods, treatment exclusions, and limited hospitalization coverage. Additionally, the study highlights discrepancies between policy statements and real-world execution. The research underscores the need for stronger regulatory enforcement, increased awareness, and a more inclusive insurance framework to ensure compliance with the MHCA, 2017. Policy recommendations include stricter monitoring mechanisms, public education initiatives, and incentivizing insurers to provide holistic mental health coverage. Addressing these issues is critical for achieving true mental health parity and ensuring equitable healthcare access for individuals suffering from mental illness in India.