Health plan to offer psilocybin-assisted therapy as an employee benefit

Health benefit plan Enthea plans to offer psilocybin-assisted therapy (PAT) coverage as a workplace benefit starting in 2024, the company announced on November 12.

PAT is a form of psychedelic therapy that is only legal in Oregon and Colorado and involves patients receiving psilocybin while under a therapist’s care. Psilocybin, commonly known as “magic” or psychedelic mushrooms, has proven to be effective in treating “addiction, depression, and end-of-life mood disorders,” according to a 2022 study.

“Given the evidence of effectiveness seen in clinical trials in the US and elsewhere, we have decided to give our employers the option of including psilocybin-assisted therapy in their benefit plans in those states that have legalized its use,” Sherry Rais, Enthea’s co-founder and CEO, said in a statement.

Enthea claims it is the only health benefit plan that currently covers psychedelic assisted therapy. The company, founded in 2022, also offers ketamine therapy coverage as an employee benefit, which it claims “leads to increased productivity, reduced absenteeism, higher retention, and lower medical expenses for employers.”

Oregon became the first state to legalize psilocybin therapy in 2020, and Colorado followed suit in 2022. Rais said Enthea expects more states will legalize the psychedelic therapy in 2024.

Enthea plans to publish guidelines for PAT coverage in Q1 2024, and hopes to be able to offer coverage for patients by midyear, according to a press release.

“We have had our eye on the potential benefits of psilocybin therapy since we founded our company,” Dan Rome, Enthea’s co-founder and chief medical officer, said in a statement. “We are very encouraged by published results as well as what we hear from practicing therapists, and are confident that this brings an important new option for combating mental illness.”