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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

Business

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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AI & Technology

Amazon Faces Potential Criminal Trial in Italy Over €1.2 Billion Tax Evasion Allegations

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Milan: U.S. tech giant Amazon is facing the prospect of a major legal showdown in Italy, after prosecutors in Milan formally requested a court to move forward with criminal proceedings over alleged tax evasion totaling approximately ₹12,500 crore (€1.2 billion).

The case targets Amazon’s European division along with four senior executives, marking one of the most significant tax-related investigations involving a global e-commerce platform in Europe.

Trial Push Despite Multi-Million Euro Settlement

The move comes even after Amazon reached a financial settlement with Italian tax authorities in December, agreeing to pay around ₹5,500 crore (€527 million), including interest, to resolve part of the dispute.

Typically, such settlements lead to the closure of criminal investigations. However, Milan prosecutors have opted to proceed, signaling a tougher stance on alleged corporate tax violations.

A preliminary hearing is expected in the coming months, where a judge will decide whether to formally indict the company and its executives or dismiss the case.

Allegations of VAT Evasion Through Marketplace Sellers

At the center of the investigation are claims that Amazon’s platform enabled non-European Union sellers to avoid paying value-added tax (VAT) on goods sold to Italian consumers between 2019 and 2021.

Prosecutors allege that the company’s marketplace structure allowed thousands of foreign vendors—many reportedly based in China—to operate without fully disclosing their identities or tax obligations. This, authorities argue, led to substantial VAT losses for the Italian government.

Under Italian law, online platforms facilitating sales can be held partially liable if third-party sellers fail to comply with tax requirements, a key point in the prosecution’s case.

Italian Government Named as Affected Party

In their filing, prosecutors identified Italy’s Economy Ministry as the injured party, citing significant financial damage resulting from the alleged tax evasion.

Legal experts say the outcome of the case could have wide-ranging implications across the European Union, where VAT systems are harmonized and similar compliance rules apply to digital marketplaces.

Multiple Investigations Add to Pressure

The VAT probe is just one of several legal challenges facing Amazon in Italy. The European Public Prosecutor’s Office is reportedly examining additional tax-related issues covering more recent years.

Meanwhile, Milan authorities are pursuing separate investigations into alleged customs fraud linked to imports from China and whether Amazon maintained an undeclared “permanent establishment” in Italy—potentially exposing it to higher tax liabilities.

In a separate regulatory action, Italy’s data protection authority recently ordered an Amazon unit to stop using personal data from over 1,800 employees at a warehouse near Rome.

Amazon Denies Allegations

Amazon has consistently denied wrongdoing and indicated it will strongly contest the allegations in court if the case proceeds. The company has also warned that prolonged legal uncertainty could impact investor confidence and Italy’s appeal as a destination for international business.

Broader Impact on Europe’s Digital Economy

If the case moves to trial, it could become a landmark moment for the regulation of global e-commerce platforms in Europe. Governments across the region are increasingly scrutinizing how digital marketplaces handle tax compliance, especially in cross-border transactions.

With online retail continuing to expand, regulators are under mounting pressure to ensure that multinational platforms and third-party sellers adhere to the same tax rules as traditional businesses.

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Aviation

IndiGo Crisis Exposes Risks of Monopoly: What If Telecom or E-commerce Collapses Next?

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Airports across India witnessed scenes of distress and confusion as thousands of passengers were stranded due to IndiGo’s massive flight disruptions. Families with medical emergencies, funerals, and personal crises were left helpless as the airline cancelled hundreds of flights without adequate communication or support.

Passengers described desperate situations — a mother pleading for sanitary pads for her daughter, a woman unable to transport her husband’s coffin, and others stranded while trying to reach family funerals or hospitals. “It was like a lockdown at the airport,” one passenger said, describing the panic that unfolded as IndiGo’s mismanagement crippled operations nationwide.

Root Cause: IndiGo’s Market Monopoly

The turmoil, industry experts argue, stems from IndiGo’s monopolistic control over India’s domestic aviation market. The airline operates nearly 2,100 flights daily and holds around 60% market share — meaning every second plane flying within India belongs to IndiGo.

This dominance has given the company unparalleled influence. When IndiGo falters, the entire aviation system suffers. Passengers are left with few alternatives, as other airlines lack capacity to absorb stranded travellers. The result: skyrocketing ticket prices, chaos at terminals, and total dependence on a single private operator.

Aviation pioneer Captain G.R. Gopinath, founder of Air Deccan, criticised the government’s inaction, noting that on some routes, IndiGo’s economy fares surged to ₹1 lakh. He compared the situation to a hostage crisis, writing that the airline “held the system ransom” and forced regulators to defer new safety rules meant to protect pilots and passengers.

Government Intervention and Regulatory Weakness

The crisis erupted after IndiGo failed to comply with the Flight Duty Time Limitations (FDTL) — rules introduced by the DGCA in January 2024 requiring adequate rest for pilots. Despite having nearly two years to adapt, IndiGo blamed the rule for operational disruptions, citing a shortage of pilots.

Under mounting public pressure, the government stepped in, temporarily relaxing FDTL norms and capping airfare hikes. Officials claimed the move was to protect passengers, but analysts say it exposed the state’s vulnerability to corporate monopolies. “The government had no option but to yield,” said one aviation policy expert, pointing out that ignoring safety regulations for short-term relief could have long-term consequences.

The crisis also rekindled memories of the June 2025 Air India crash near London, which claimed over 240 lives. Experts warn that compromising pilot rest and safety standards to maintain flight schedules could risk another tragedy.

If Telecom Giants Fail: A National Paralysis

The article raises a troubling question — what if a similar crisis struck the telecom sector, where Jio and Airtel together control nearly 80% of subscribers and serve over 780 million users?

If both networks failed simultaneously, the repercussions would be catastrophic. Internet shutdowns would halt UPI transactions, online banking, OTP verifications, video calls, OTT streaming, and emergency communications. Critical services such as airports, hospitals, stock exchanges, and small businesses — many of which rely on WhatsApp and digital payments — would come to a standstill.

In essence, a telecom breakdown could paralyse India’s digital economy, exposing the nation’s dependence on a duopoly.

E-commerce Monopoly: Another Fragile Ecosystem

The same risk looms over the e-commerce sector, where Amazon and Flipkart dominate nearly 80% of the market. A disruption similar to IndiGo’s could cripple daily life — halting delivery of groceries, medicines, and essential goods, freezing refunds and customer support, and leaving small sellers without platforms to trade.

Local retailers, freed from competition, might exploit shortages by inflating prices. Such a scenario underscores the perils of market centralisation in sectors critical to everyday living.

A Wake-Up Call for Regulators

The IndiGo crisis, analysts say, is a warning shot for policymakers and regulators. A single company’s operational failure exposed systemic weaknesses in India’s infrastructure and consumer protection mechanisms.

As the aviation regulator DGCA investigates and IndiGo works to restore normalcy, the broader lesson remains clear: unchecked monopoly power in any essential service — whether air travel, telecom, or e-commerce — poses a direct threat to economic stability and citizen welfare.

Without stronger competition laws, redundancy frameworks, and regulatory oversight, India risks repeating this crisis across multiple sectors — each time with millions of citizens paying the price.

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