Mental Health Practitioners NAICS 621330

May 15, 2025 - States Sue Trump Administration Over HHS Changes

• 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.
• The US Congress is considering plans to cut Medicaid to help pay for tax cuts, according to health policy organization KFF. A House of Representatives budget resolution targets $880 billion or more in potential reductions to federal Medicaid spending. Mental health practitioners are highly dependent on government programs and third-party insurers to pay for services. Public sources including Medicare, Medicaid, State Children's Health Insurance Program (SCHIP), and other federal and state programs are the main payers of behavioral health services, according to the US Department of Health and Human Services. Medicaid is the primary program providing comprehensive health and long-term care to one in five US residents and accounts for nearly $1 out of every $5 spent on health care.

• 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 three 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.