In a disturbing trend sweeping the United States, a rising number of patients are filing lawsuits against their health insurance providers. They accuse these companies of maintaining inaccurate directories of mental health professionals, listing therapists and doctors who are unreachable, not accepting new patients, or simply not part of the network. This practice, often called creating 'ghost networks,' leaves desperate individuals without critical care.
The Personal Toll of Inaccurate Directories
The human cost of these faulty listings is immense. Take the case of Joe Greene, a 59-year-old real-estate broker from New York City. When his doctor retired, he urgently needed to renew prescriptions for his anxiety and depression. He called dozens of providers listed on his insurer, Healthfirst's, website but hit dead ends every time. "They either don’t pick up, they aren’t in-network or they aren’t seeing new patients," Greene recounted. Facing the terrifying prospect of going 'cold turkey' off his medications, he was forced to pay roughly $50,000 over two years for an out-of-network psychiatrist. Healthfirst declined to comment on his case.
Another plaintiff, Michelle Mazzola, a Connecticut-based construction executive, spent months searching in vain for in-network treatment for her autistic toddler through her insurer, Anthem. With no success, her family now shoulders staggering costs of up to $20,000 each month for out-of-network care. An Anthem spokeswoman stated the company meets state law requirements and relies on providers to update their information, but did not comment on the pending litigation.
A Systemic Failure with Few Consequences
By law, insurers are mandated to provide customers with an accurate list of covered providers. However, lawyers argue that companies routinely violate this rule. Abigail Burman, a lawyer who has studied the issue, starkly noted, "The reports have not changed the fact that it is cheaper to break the law than comply with the law." Researchers and regulators have known about these ghost networks for years. A Wall Street Journal investigation earlier in 2025 found that many providers listed in Medicaid plan directories had seen few or no patients.
Insurers often shift the blame. Danielle Lloyd of the health-insurance trade group AHIP stated that maintaining accurate directories is a "shared responsibility" with clinicians and facilities. Yet, the problem is especially severe in mental health. Lawyer Brian Hufford explains that insurers pay mental health providers less than for medical care, so many therapists opt out of networks altogether. "In areas like New York, there are enough people who can pay out of pocket... What that means is anyone who is not well-off financially has difficulty getting care," he said.
Legal Battles and an Uphill Fight for Justice
The surge in lawsuits, according to lawyer Sara Haviva Mark, is partly due to greater cultural acceptance of mental health issues, especially since the Covid-19 pandemic. "People are willing to talk about it," she said. However, these new lawsuits focusing on mental-health care face significant legal hurdles, including getting approval to proceed as class actions.
A major challenge is quantifying damages for those who received no treatment at all. "The irony is that the people who are most hurt, those that abandon the search for care, have the hardest time recovering damages," said lawyer Steve Cohen. Evidence of the problem is compelling. Law firm Pollock Cohen, representing California plaintiff Jenniffer Roiz, conducted a 'secret shopper' study. Interns called 100 listed in-network providers near Roiz's home; only 13% were actually in-network and could schedule an appointment within a month. Her insurer, Blue Shield of California, also declined to comment on litigation.
While some progress has been made in related areas—Cigna agreed to a $5.7 million settlement and Health Net to a $40 million settlement this fall over inaccurate directories (both denied wrongdoing)—the fight for reliable mental health coverage continues. For patients like Joe Greene, the goal is clear: "It can’t be just me. I don’t want anyone else to have to go through this."
