Mental Health Practitioners NAICS 621330

Jul 9, 2025 - One Big Beautiful Bill Includes Significant Medicaid Cuts

• President Trump has signed into law the $3.4 trillion One Big Beautiful Bill that is estimated by Healio to include $930 billion in Medicaid cuts over 10 years. Mental health practitioners are highly dependent on government programs and third-party insurers to pay for services. Nearly 12 million more people may be uninsured by 2034, with many losing coverage because of the Medicaid provisions in the bill, according to a US Congressional Budget Office analysis. For the first time in the Medicaid program’s nearly 60-year history, certain able-bodied adults aged 19 years to 64 years will be required to work, participate in job training, volunteer, or enroll in school at least 80 hours a month to maintain their Medicaid benefits. This will also be required for parents of children aged 14 years and older.
• Nineteen states and the District of Columbia filed a lawsuit against the federal government to block the Trump administration’s restructuring of the US Department of Health and Human Services (HHS). The plaintiffs argue that the restructuring is an “unconstitutional and illegal dismantling of the department.” They contend that the government has violated hundreds of laws and bypassed congressional authority by enacting the plan, leaving HHS unable to execute many vital functions. The plaintiffs also said that the restructuring has significantly hindered mental health and substance use services, HIV/AIDS response efforts, maternal mortality monitoring and disability support, among other key services.

• Medicare payments to Medicare Advantage plans are expected to increase an average of 3.7%, or over $16 billion in 2025, according to the Centers for Medicare & Medicaid Services. Medicare Advantage plans are required to cover all mental health and substance use disorder services covered under Medicare Parts A and B. The finalized the Calendar Year 2025 Rate Announcement for Medicare Advantage is projected to result in payments of between $500 and $600 billion in Medicare Advantage payments to private health plans in 2025.
• Mental health industry employment increased slightly and average wages for nonsupervisory employees decreased slightly during the first five months of 2025, according to the US Bureau of Labor Statistics. US mental health industry sales are forecast to grow at a 5.75% compounded annual rate from 2025 to 2029, faster than the growth of the overall economy, according to Inforum and the Interindustry Economic Research Fund, Inc.