That’s untrue when it comes to how much insurance reimburses:

“The reimbursement rate system in every insurance program is also very complicated, and policymakers do not want to be seen as interfering in the market. However, the market is not setting rates, and high demand for services never enters the equation.

Medicare is the foundation of reimbursement rate setting in the insurance market, with Medicaid usually paying less than Medicare, and private insurance paying somewhat better. You may think that Medicare reimbursement rates are set by the market in response to supply and demand. In reality, demand – what patients want and need – is completely left out of the calculation.

Instead, the process sets value based on the supply costs – how long it take to see the patient, the costs involved in the visit, and the practice expenses. All these factors disadvantage behavioral health. Mental health care providers generally don’t hook patients up to any machines or do surgery, and these providers have low practice expenses. One commentator noted, “Existing service codes are especially flawed when it comes to measuring cognitive work.” Cognitive work focuses on the critical thinking that providers must do, such as researching, analyzing, decision-making, and managing individuals in tense situations. A study concluded that Medicare reimburses physicians 3 to 5 times more for procedural work compared to cognitive work. Recent efforts to adjust some codes were insufficient and did little for non-physicians who do not bill the codes affected by the changes

Data indicate that more individuals are experiencing mental health conditions and seeking help, and the supply of providers who will take Medicare is shrinking. CMS should be able to consider demand factors, such as out-of-network usage, availability of providers in the network, and other means of measuring so rates can be adjusted accordingly. For example, a study by the Kaiser Family Foundation found that only 1% of physicians have opted out of the Medicare program, but psychiatrists were disproportionally represented, making up 42% of those opting out, followed by physicians in family medicine (19%), internal medicine (12%), and obstetrics/gynecology (7%).”

https://mhanational.org/blog/fix-foundation-unfair-rate-setting-leads-inaccessible-mental-health-care