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Does Health Insurance Cover Mushrooms and Psychedelics? (Even with a Doctor’s Note?)

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Will health insurance pay for psilocybin and mushrooms for medical purposes?

health insurance for psychedelics

It may seem far-fetched to have a health insurance company pay for an ecstasy or magic mushroom trip, but the psychedelics market is already crunching the statistics and proposing US insurers.

Early results from clinical trials on substances like MDMA and psilocybin have been encouraging. In the middle of what is often regarded as a mental health crisis, many of these initiatives target a few of the most expensive and challenging mental health conditions while they are still happening. Researchers and executives discussed how that might convince health insurers, or “payors,” to jump on board during a Perspective on Psychedelics conference in New York.

According to Michael Mullette, chief operating officer at the Multidisciplinary Association for Psychedelic Studies (MAPS), every payor is searching for mental-health treatments.

More than $200 billion is thought to be spent on mental health services annually in the US, with the Medicaid program bearing a large share of the cost. A large portion of the money spent by private insurers goes into medications like antidepressants, primarily selective serotonin reuptake inhibitors (SSRIs), which are prescribed for conditions like PTSD, anxiety, and depression. Many pay for talk therapy, which can be helpful but is an expensive and drawn-out process of recovery.

When used in conjunction with so-called “psychedelic-assisted therapy,” where the medicines are supposed to increase patients’ openness to mental transformation, psychedelics are being investigated as an alternative to SSRIs. Although no such therapies have been licensed as of yet, it is anticipated that they will be costly considering that counseling would be required on top of the fact that some psychedelics frequently include hours-long trips that need to be watched by trip sitters. Therefore, gaining insurer support is essential if psychedelic entrepreneurs are to achieve the widespread use they envision.

Of course, there are certain important restrictions. Additionally, psychedelic therapy providers will need to demonstrate their therapies are economical even if regulators permit them.

PROVING THE NEED FOR PSYCHEDELIC TREATMENTS

MDMA, usually referred to as Molly or ecstasy in its street forms, has been studied by MAPS as a possible treatment for post-traumatic stress disorder. If the US Food and Drug Administration grants the go-ahead, MDMA may potentially become the first psychedelic substance to be commercially available. Its clinical studies for PTSD are already far along. But because drug-assisted therapy is a fresh idea for both insurers and the FDA, it will encounter an intriguing obstacle. Mullette, who started at MAPS in March, has an intriguing background in dealing with insurance companies and bringing innovative therapies to market: At the peak of the epidemic, he assisted Moderna’s vice presidents in the distribution of Covid-19 vaccinations.

Regarding his organization’s interactions with insurers thus far, Mullette stated that they were very encouraged by their statistics, but he did not specify with whom MAPS may have provided data.

The course director for cost-effectiveness analysis in public health and medicine at the University of California in San Francisco, Elliot Marseille,  gave a different presentation at the conference that stated that the results do indeed appear promising. Marseille, who works as a specialist for MAPS, has already conducted research on low-cost treatments for AIDS and HIV.

In his presentation, Marseille displayed slides that predicted that over a 10-year period, psychedelic treatments may save insurers between $39.5 million and $46.7 million for every 1,000 patients. (However, he acknowledged that given the widely varying cost scenarios, it is still difficult to forecast.) Marseille said he thinks insurers will be motivated to offer them for other than first-order reasons because mental health issues frequently mix with other issues like diabetes.

The majority of the anticipated cost savings, according to him, are in the physical realm as opposed to the psychiatric.

Along with Marseille, the chief executive officer of the Network for Excellence in Health Innovation, a nonprofit health policy institute, Wendy Warring, stated that having insurers on board is crucial for ensuring that benefits are shared by all people, not just the wealthy who can afford hours-long psychedelic trips combined with therapy.

GROWTH / MOVEMENT OF PSYCHEDELIC-ASSISTED THERAPY

The psychedelic industry still lacks the endorsement of insurance companies, a crucial component of widespread healthcare reform, even as the public continues to place increasing trust in psychedelic-assisted therapy backed by solid research. Florida and Hawaii’s respective legislatures introduced identical legislation this month, while Oregon recently began a two-year period to develop an effective structure for psilocybin-assisted therapies. Now it appears that some legislators in Iowa and Texas are at least attempting to copy this model. A legal framework for dispensing psychedelic medications is inevitable, at the very least in Oregon. What must occur before these chemicals are recognized by the medical community as treatments that are covered by insurance?

Insurance firms frequently serve as gatekeepers for patients seeking medical care in North American healthcare systems, for better or worse. Although the healthcare systems in America and Canada differ significantly, insurance firms are a part of both systems and they both provide healthcare to differing degrees. Although the scope of coverage for medication and therapies varies among the present frameworks, psychedelic-assisted therapy is quickly developing as a novel pairing of medication and therapy that has never been covered by insurance.

ARE INSURANCE COMPANIES GOING TO JOIN THE PSYCHEDELIC MOVEMENT ?

Psychedelic-assisted therapy’s superior efficacy to conventional drugs like antidepressants may be what most persuades insurance companies to offer reimbursement. For the majority of insurance companies, cost-effectiveness is a given. However, legal restrictions and present drug prohibitions in North America, on both the Canadian and American sides, may prevent them.

The co-founder of Mr. Psychedelic Law, Dustin Robinson, predicts that insurance will play a significant role. Remember, the drug [psilocybin] is unlawful under federal law, he cautions.

The U.S. Controlled Substance Act classifies psilocybin as a Schedule I substance, and the Canadian Controlled Drugs and Substances Act classifies it as a Schedule III substance.

Robinson expresses the viewpoint of the United States, stating that In Oregon, the state is trying to negotiate with the insurance providers to get it covered, which is not going to be simple. Psilocybin won’t be covered by insurance companies because it is an illegal substance, just like cannabis isn’t being covered.

BOTTOM LINE

Healthcare insurers are finding it difficult to take on psychedelic trips because the psychedelics are still largely considered illegal in the country. However, researchers are looking to prove the health benefits of psychedelics in order to get it under the health insurance policy.

Source: https://cannabis.net/blog/news/does-health-insurance-cover-mushrooms-and-psychedelics-even-with-a-doctors-note

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Jio’s 1,600-Satellite LEO Constellation Gets Technical Green Light

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Reliance Jio has crossed a significant milestone in its space connectivity ambitions after its proposal to deploy a Low Earth Orbit (LEO) satellite constellation of around 1,600 satellites received a positive technical assessment from the Indian National Space Promotion and Authorisation Centre (IN-SPACe).

The evaluation, conducted jointly by IN-SPACe, the Indian Space Research Organisation (ISRO), and the Wireless Planning and Coordination (WPC) wing of the Department of Telecommunications, reportedly concluded that Jio’s proposed system meets the required technical standards and is comparable to leading global satellite broadband networks.

India’s Indigenous LEO Satellite Vision

Under the proposal, Reliance Jio plans to deploy between 1,600 and 1,650 satellites in Low Earth Orbit at an altitude of around 650 kilometres.

The planned constellation is expected to provide high-speed satellite connectivity across India, with approximately 32 satellites visible from any location at a given time. The company aims to roll out the network within the next two to three years, subject to regulatory approvals.

According to industry estimates, the satellite system could deliver 4.5 to 5 terabits per second (Tbps) of total data capacity, making it one of the largest satellite broadband projects proposed in India.

The project is expected to require an investment of $10–15 billion (approximately ₹95,000 crore to ₹1.42 lakh crore), reflecting the scale of infrastructure needed for satellite manufacturing, launches, ground stations, and user terminals.

Regulatory Process Moves Forward

Following the successful technical review, the proposal is expected to move into the next phase of regulatory approvals.

The government may now assist Jio in securing orbital slots, coordinating spectrum usage, and filing applications with the International Telecommunication Union (ITU), the global body responsible for managing satellite orbit and frequency allocations.

Obtaining orbital rights remains a critical step, as Low Earth Orbit has become increasingly competitive due to the growing number of satellite broadband projects being planned worldwide.

Officials also indicated that the proposed satellite architecture has been designed to coexist with future Indian LEO constellations, allowing multiple domestic operators to share orbital resources efficiently.

Broadband, Mobile Connectivity, and Strategic Applications

Jio plans to use the satellite network to provide a range of communication services, including satellite broadband, mobile backhaul, enterprise connectivity, and direct-to-device (D2D) satellite communication, particularly in remote and underserved regions where conventional telecom infrastructure is limited.

The company also intends to establish 20 to 22 ground stations across India to support network operations.

Apart from commercial telecommunications, officials have highlighted the project’s potential strategic importance. A domestically developed satellite constellation could strengthen India’s communication infrastructure, reduce dependence on foreign satellite operators, and support national security requirements.

Reports suggest preliminary discussions are underway regarding the possibility of integrating defence-related payloads into some satellites, enabling both civilian and strategic use.

Major Step for India’s Space and Telecom Sectors

Industry analysts view the technical clearance as an important milestone in India’s expanding private space ecosystem. If Jio secures the remaining regulatory approvals and international orbital clearances, the project could become the country’s first large-scale indigenous LEO satellite broadband network.

The initiative also aligns with India’s broader efforts to expand digital connectivity while strengthening its presence in the global satellite communications market.

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Alleged Crores Pharma Scam Mastermind Arrested from Surat

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After evading law enforcement for nearly 13 years, an accused linked to a large-scale pharmaceutical fraud case has been arrested by Delhi Police from Surat, Gujarat. The suspect is alleged to have orchestrated a series of financial scams involving fake identities, forged documents, and dishonoured cheques used to procure high-value pharmaceutical raw materials.

Authorities say the accused, identified as Himmat Singh Lodha, is believed to have defrauded multiple pharmaceutical companies in Delhi of goods worth approximately ₹98 lakh before disappearing and remaining underground for years.

Fake Business Deals and Dishonoured Cheques Used in Fraud

Investigators claim the accused posed as a legitimate pharmaceutical trader and placed bulk orders for expensive drug ingredients, offering post-dated cheques as payment security.

In one documented case from 2013, he allegedly obtained around 550 kilograms of Gliclazide, a diabetes-related pharmaceutical ingredient, valued at over ₹26 lakh. When suppliers attempted to encash the cheques, they were reportedly returned with the remark “account closed.”

Following the transaction, the accused allegedly vacated his office and rented residence and disappeared without settling payments. He was later declared a proclaimed offender in 2016 after repeatedly failing to appear before court proceedings. Authorities had also issued a reward for information leading to his arrest.

Multiple Identities and Repeated Fraud Pattern

Police investigations further link the accused to another cheating case dating back to 2012, where he allegedly used a fake identity, “Kailash Jain,” to obtain a large consignment of Ambroxol HCL, a pharmaceutical compound used in cough medications. The value of that consignment was estimated at around ₹72 lakh.

Officials believe the accused followed a consistent modus operandi—posing as a credible businessman, securing high-value goods on deferred payment terms, and then disappearing after delivery while shutting down business operations.

Investigators suspect that forged business records, fake company credentials, and fabricated financial histories were used to build trust with suppliers and gain access to expensive raw materials.

Multi-State Surveillance Leads to Arrest in Surat

A special Crime Branch team tracked the accused through coordinated surveillance efforts across multiple cities, including Mumbai, Ahmedabad, and Surat. After nearly a month of technical monitoring and intelligence gathering, officials located and arrested him from a residential area in Surat.

Authorities also revealed that the accused had been involved in property-related activities while staying under the radar to avoid detection.

Growing Threat of Corporate Identity Fraud

The case highlights a rising trend of organised financial fraud targeting industries that rely heavily on trust-based transactions and deferred payments. Experts note that criminals increasingly exploit gaps in corporate verification systems by using fake GST registrations, temporary offices, and forged documentation to appear legitimate.

Cybercrime and financial fraud specialists warn that such schemes are becoming more complex with the widespread availability of digital business tools, making it easier to create convincing but fraudulent corporate identities.

Experts Urge Stronger Due Diligence in High-Value Transactions

Experts, including former IPS officer and cybercrime specialist Prof. Triveni Singh, emphasize the need for stricter verification procedures in commercial dealings. He noted that relying solely on paperwork or digital business profiles can expose companies to significant financial risk.

Authorities and industry experts recommend physical verification of business operations, bank account validation, and detailed background checks before engaging in high-value or deferred-payment transactions—particularly in sectors like pharmaceuticals, where single consignments can involve transactions worth crores.

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EU Pressure Builds on Google as Regulators Face Calls for Massive Fine Over Search Practices

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A growing coalition of European industry groups is intensifying pressure on regulators to take decisive action against Google over allegations of unfair search practices that could reshape competition rules across the region’s digital economy.

Investigation Under Digital Markets Act Gains Momentum

The case is being examined by the European Commission under the European Union’s landmark Digital Markets Act (DMA), introduced to curb the dominance of major technology platforms and ensure fair competition.

Launched in March 2024, the investigation focuses on whether Google has been prioritising its own services in search results, potentially disadvantaging rival businesses that rely on online visibility to reach customers.

Industry Groups Demand Swift Action

Several prominent European organizations have jointly urged regulators to conclude the probe without further delay. They argue that prolonged investigations allow alleged anti-competitive practices to continue, putting European companies—especially startups—at a disadvantage.

Signatories include the European Publishers Council, the European Magazine Media Association, the European Tech Alliance, and EU Travel Tech.

In a joint statement, these groups warned that delays in enforcement are affecting innovation, profitability, and growth prospects for regional businesses competing in digital markets.

Google Denies Allegations

Google has rejected claims of bias, stating that its search algorithms are designed to deliver the most relevant and useful results to users. The company has also proposed adjustments to address regulatory concerns.

However, critics argue that these changes are insufficient and fail to address the core issue of market dominance.

Potential Billion-Euro Penalties

If found in violation of the DMA, Google could face significant financial penalties. Under EU rules, fines can reach a substantial percentage of a company’s global turnover, potentially amounting to billions of euros.

Regulators may also impose corrective measures requiring changes to business practices, which could have long-term implications for how digital platforms operate in Europe.

Wider Implications for Big Tech

The case highlights ongoing tensions between European regulators and major U.S. technology firms. In recent years, the EU has taken a more aggressive stance in enforcing competition laws, aiming to create a level playing field for local businesses.

A final ruling against Google could set a major precedent, influencing future enforcement actions and shaping the regulatory landscape for global tech companies operating within Europe.

As scrutiny intensifies, the outcome of the investigation is expected to play a critical role in defining the future of digital competition across the European Union.

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