AMA-Backed Mental Health Parity Index Tool Reveals Real-Time Gaps in Insurance Coverage and Payments

The Kennedy Forum, in collaboration with the American Medical Association and other partners, launched a Mental Health Parity Index tool April 14, 2026, in Washington, D.C., providing the first real-time data on commercial insurance coverage and payments for mental health and substance use disorder treatment. According to officials, the tool revealed widespread disparities in coverage and payments compared to physical health care across 43 states and 70% of counties nationwide.

The Mental Health Parity Index tool, launched by The Kennedy Forum in collaboration with Third Horizon, the American Medical Association (AMA), the American Psychological Foundation, and the Ballmer Group, offers the first real-time data on commercial insurance coverage and payments for mental health and substance use disorder treatment, officials said. Unveiled April 14, 2026, in Washington, D.C., the tool reveals significant disparities in coverage and payment compared to physical health care across 43 states and 70% of counties nationwide, according to records reviewed by The Kennedy Forum and AMA representatives.

Physicians providing mental health and substance use disorder care receive nearly 27% less in payments than those delivering physical health services, sources confirmed.

Data from the tool show that enrollees in plans from the nation’s four largest commercial health insurers face widespread inequities in in-network mental health care and substance use disorder treatment relative to physical health care in 43 states, officials said. All states analyzed exhibit disparities in payment for these services, with mental health and substance use disorder treatment paid between 16% and 59% less than physical health care on average, according to the AMA. However, inpatient mental health admissions receive per-day payments nearly twice as high as physical health admissions, the data show.

At the county level, the tool highlights that seven in 10 counties face challenges with in-network mental health care or substance use disorder treatment compared to physical health care, officials said. This contributes to difficulties for patients seeking local in-network clinicians, leading to longer wait times and increased out-of-pocket costs. The tool uses transparency files from insurers to pinpoint county-level gaps in network adequacy, providing stakeholders with detailed insights into local access issues, according to Third Horizon President Greg Williams. “For the first time, stakeholders can see plan-specific detail across geographies, enabling cost-saving and life-saving action,” Williams said.

AMA experts noted the findings align with years of health plan failures to comply with mental health parity laws. “The Mental Health Parity Index will support efforts to improve outcomes for patients,” said Dr. Ehrenfeld during a May webinar titled “Transparency in Action: The Mental Health Parity Index,” which broke down inequities in coverage and payment. AMA’s Botts expressed optimism about using the transparency data to influence policymakers and hold payers accountable for parity violations causing patient harm. The AMA urged state and federal policymakers to enforce compliance with parity laws, emphasizing the tool’s role in highlighting ongoing disparities.

The tool’s launch represents a collaborative effort to increase transparency in commercial insurance markets, officials said. The Kennedy Forum, alongside partners including the American Psychological Foundation and the Ballmer Group, developed the Index to provide real-time, plan-specific data that reveal how payers fall short despite existing parity regulations. According to the Kennedy Forum, the data illuminate how disparities in network adequacy and payment rates contribute to reliance on out-of-network care for mental health and substance use disorder treatment.

The Mental Health Parity Index is expected to expand nationally, offering health plans, employers, policymakers, and providers a clearer view of where parity breaks down, Williams said. The tool’s granular data can inform efforts to strengthen provider networks and improve patient access to mental health services. Officials noted that transparency is a critical step toward addressing systemic issues in insurance coverage and reimbursement for mental health and substance use disorder care.

The initiative builds on growing recognition of the need for parity in health insurance coverage. Despite federal and state laws requiring equal coverage for mental health and physical health services, disparities persist, according to AMA and Kennedy Forum officials. The Mental Health Parity Index aims to provide the data necessary to enforce these laws and improve equity in insurance coverage and payments nationwide.