Oregon Mental Health Advocates Call for Ombuds Office to Address Insurance Challenges

May 29, 2025 | Behavioral Health and Health Care, House of Representatives, Committees, Legislative, Oregon


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Oregon Mental Health Advocates Call for Ombuds Office to Address Insurance Challenges
In a recent meeting of the Oregon House Committee on Behavioral Health and Health Care, mental health providers voiced urgent concerns about the ongoing challenges they face in delivering care amid a complex and often exploitative insurance landscape. The discussions highlighted the pressing need for legislative action to support mental health professionals and improve access to care for Oregonians.

The meeting featured testimonies from several mental health practitioners, including Tiffany, a therapist who shared her journey from a diverse business background to establishing a private practice. She described the emotional fulfillment of her work but lamented the overwhelming stress caused by insurance companies' practices, which she characterized as exploitative. Tiffany recounted a crisis in 2017 when a major insurance provider abruptly closed, leaving many practitioners without clients and forcing them to navigate a bureaucratic maze to survive. She warned that similar challenges loom as the Oregon Health Authority (OHA) prepares to implement new regulations that could further burden small practices.

Larry Connor, a seasoned counselor and political advocate, echoed these sentiments, emphasizing the need for an ombudsman office dedicated to supporting mental health providers. He argued that existing laws meant to protect providers from insurance abuses are often ignored, leaving practitioners without recourse. Connor provided examples of how insurers manipulate billing codes and reimbursement rates, creating financial strain for therapists and ultimately impacting patient care.

Melissa Todd, a psychologist, presented data illustrating the disparities in reimbursement rates between behavioral health providers and other medical professionals. She noted that while some progress has been made since the passage of behavioral health parity laws, significant gaps remain, particularly regarding non-quantitative treatment limitations that disproportionately affect mental health services.

The testimonies culminated in a unified call for the establishment of an ombudsman office to advocate for mental health providers. This office would serve as a resource for therapists to report violations and navigate disputes with insurance companies, thereby alleviating some of the burdens they face in their practice. The providers stressed that without such support, the quality of care for clients would continue to suffer.

As the committee deliberates on these issues, the voices of mental health providers underscore the urgent need for systemic change in Oregon's behavioral health landscape. The proposed ombudsman office represents a potential lifeline for practitioners striving to deliver essential services in an increasingly challenging environment. The committee's response to these concerns will be crucial in shaping the future of mental health care in the state.

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