November 18, 2020
A New Mental Healthcare System, Rewired for Access and Affordability
As part of moving to NYC in 2015, I tried to find a therapist and failed—failed for the same reason that the majority of the one in four Americans with a treatable mental health condition such as depression fail to find care. I couldn’t find a therapist that I could afford because 70% of therapists don’t accept insurance.
The reality is that therapists would accept insurance if it weren’t so hard. But it is hard, because insurance wasn’t built for therapists. It was built for huge hospital systems who employ entire departments to deal with the administrative burden of insurance. As individual practitioners, therapists don’t have the bandwidth to support taking insurance.
Headway is solving this problem by building the first national network of therapists who accept insurance. Because Headway’s free software for therapists handles all the work to accept insurance, two out of three providers that you’ll find on our platform don’t accept insurance anywhere else. Headway also enables anyone to find a provider who accepts their specific insurance plan. Put together, Headway is helping tens of thousands of patients who, like me in 2015, would otherwise be unable to find affordable mental healthcare.
$32M in funding from leaders in healthcare and technology
My co-founders—Jake, Dan, Kevin—and I are excited to announce that Headway has raised $26M in Series A funding, bringing our total funding to $32M, so that Headway can scale to serve millions more throughout the United States.
The new round was led by Thrive and GV, with participation from existing investors at Accel (who led our seed round), GFC and IA Ventures. We’ve also received angel investment from the founders of influential new healthcare companies like One Medical, Flatiron Health, and Clover Health.
We’re eager to use this capital and support to build out our vision of a new mental healthcare system rewired for access and affordability.
Now is the time for a new mental healthcare system that works for everyone
While destigmatization has meaningfully changed the conversation around people seeking mental health care, it hasn’t yet meaningfully changed the system such that people actually get mental health care. Fortunately, the system is poised for change.
Today, mental health care has gone from an afterthought of employers and government to a top-five employer health concern and a key focus of government legislators. Because employers and the government are the primary customers of insurance companies, insurers have never been more incentivized to help build a system where patients actually get care.
Headway is partnering with insurers to make this new system a reality: today, Headway’s providers represent the majority of the therapists and psychiatrists in the networks of most major health plans in NYC, and the vast majority of these providers did not accept insurance before Headway.
A new and more affordable mental healthcare system couldn’t be more direly needed, as the pandemic has impacted the mental health of tens of millions of people—and has disproportionately affected those least able to afford care.
As a company dedicated to access and affordability, we’ve focused on inclusivity across regions and socioeconomic statuses. We are proud to support communities outside of large urban centers: most of our appointments are booked by patients located outside of Manhattan (and at the moment 95+% are happening over video platforms during shelter in place). Our patients who receive health insurance benefits from their employer work everywhere from the MTA to Google, and many of our patients rely upon government subsidized health insurance.
It's time for a new mental healthcare system, rewired for access and affordability. We're making that system real—today.
We’re here to chat if you’re an innovative health plan or system looking for a solution to solve your behavioral health network challenges, a mental health clinician looking to grow or diversify your practice and help folks currently sidelined by the cost of care, a member of the press, or a talented professional interested in making our vision real as we expand throughout the United States.
And finally, if you’re in the position I once was—struggling to find someone great who actually takes your insurance—please consider connecting with a therapist or psychiatrist here on Headway.