What You Should Know:
– Enthea, the first provider of insurance plans for psychedelic healthcare, has announced a $2M Seed Round raise led by Tabula Rasa Ventures to offer psychedelic-assisted therapy as a workplace benefit.
– The funds will be used to launch Enthea’s services into 40 markets across the U.S. in 2023 as well as grow its customer base and provider network to increase access to new, evidence-based healing options that have proven to be very effective in improving symptoms for a wide range of behavioral health conditions over a sustained period. It is expected to channel $600M of employer funding to psychedelic-assisted therapy by 2026.
– Enthea has already signed Daybreaker, Tushy, and Guinn Partners, and has plans to add 100 more customers by end of the year. It has also received 90 letters of interest from providers in 26 states and will be bringing in 6 new providers in-network in early 2023.
Why Psychedelic Healthcare?
The United States is in a mental health crisis as 21M adults suffer from major depressive disorder and 12M from post-traumatic stress disorder and another 20M from substance use disorder. An ever-increasing number of clinical studies are showing that psychedelic treatments such as ketamine-assisted therapy can be very effective in improving symptoms for a wide range of behavioral health conditions over a sustained period of time.
Enthea is helping in this mental health crisis by bringing employer funding for these new treatments. Because traditional health insurers are years away from adding this coverage, the cost to patients prohibits widespread adoption. Key to Enthea’s mission is to make psychedelic-assisted therapies affordable, accessible, and equitable for as many as possible through its Provider Network – so that it’s not only available to the affluent but to all who would benefit. Enthea provides a turn-key operation that makes it easy for employers to include these treatments as part of their health care coverage to employees and their families. Its plans currently cover ketamine-assisted therapy; MDMA- and psilocybin-assisted therapies will be added as they become FDA-approved in the next several years.
“Through the creation of the country’s first psychedelic healthcare provider network, Enthea is taking a big step in creating access to these new, evidence-based healing options,” said Sherry Rais, CEO and Co-Founder of Enthea. “And as a workplace benefit, this treatment becomes affordable. Next year, most employers across the U.S will be able to offer these innovative treatments, covered under insurance, for the first time.”
Psychedelic Therapy as a Workplace Benefit
Enthea has spent the last two years building the infrastructure needed to scale and bring this concept to market. In January 2023, it will launch its services in New York City, Austin, and the Bay Area with the goal of opening in 20 top U.S. cities by mid-2023, and another 20 by the end of 2023 (See the full list). To create this offering of psychedelic therapy as a workplace benefit, Enthea has developed several core competencies:
– Evidence-based medical policies for psychedelic therapies that are regularly updated based on clinical developments and FDA approvals.
– Standards of care and credentials across the Enthea Provider Network to assure quality, positive patient experiences, and positive treatment outcomes.
– Easy treatment authorization and reimbursements to providers, while shielding employers from Protected Health Information.
– A range of customizable options based on the company’s business and personnel needs.
Businesses can expect a positive impact on productivity from healthier employees, a reduction in medical expenses (especially when a mental disorder is paired with a chronic medical condition, eg diabetes), increased employee retention, and reduced turnover. Some companies will benefit by becoming a more attractive workplace for younger workers, who tend to seek employers with more generous and innovative benefit offerings.