Patients Struggle to Find Mental Health Providers in Insurance 'Ghost Networks'

A recent lawsuit challenges one company over its misleading provider listings, highlighting a widespread issue.

Published on Feb. 25, 2026

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Patients have long faced frustration trying to find in-network mental health providers through their insurance company directories, only to discover many are not accepting new patients or have incorrect contact information. This phenomenon, known as a 'ghost network,' has led some patients to pay large sums out-of-pocket or delay care. A recent class action lawsuit filed by New York government employees alleges that insurer EmblemHealth violated state law by failing to provide accurate information about its network of mental health providers.

Why it matters

The lawsuit highlights a systemic problem that has long plagued patients seeking mental health care coverage. Inaccurate provider directories make it difficult for patients to access the care they need, especially during times of crisis. This issue disproportionately impacts those with employer-sponsored health plans, who have been prevented from suing insurers over directory errors due to a federal law. The new lawsuit targeting a government health plan may provide a path forward for patients to hold insurers accountable.

The details

The lawsuit alleges that EmblemHealth's provider directory makes it appear the company has more in-network mental health providers than it actually does, helping it attract more members without having to pay providers market rates. The suit claims this violates state and federal requirements for insurers to offer an adequate number of in-network options. The American Psychiatric Association is also a plaintiff, alleging EmblemHealth misrepresents the coverage psychiatrists offer.

  • In early 2024, plaintiff Val Calderon suffered a miscarriage and had suicidal thoughts.
  • Calderon gave birth to her daughter last year and later experienced postpartum depression symptoms.
  • The lawsuit was filed in December 2025.

The players

EmblemHealth

A health insurance company that offered the most popular plan for New York City government workers until this year, when it launched a new plan in partnership with UnitedHealthcare.

Val Calderon

A New York City public school special education teacher and one of the plaintiffs in the lawsuit against EmblemHealth.

Sara Haviva Mark

The attorney representing the plaintiffs in the lawsuit against EmblemHealth.

American Psychiatric Association

A plaintiff in the lawsuit alleging EmblemHealth misrepresents the coverage psychiatrists offer.

Steve Cohen

A lawyer who has filed five class action lawsuits challenging 'ghost networks' by insurance companies.

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What they’re saying

“The more providers that are listed, the more people that will choose a plan, the more premiums, the more money they make.”

— Sara Haviva Mark, Attorney (NBC News)

“I felt enraged. I still feel enraged. This health care coverage is supposed to provide me with mental health support, and there isn't any mental health support — so I don't have health care coverage. That's how I look at it.”

— Val Calderon, Plaintiff (NBC News)

“I've even had it in my clinical practice in the past, where patients are reaching out, crying, desperate, trying to get their loved ones the help that they need. By the time they reach the fifth, sixth, seventh provider and recognize that the network is really a ghost network, they are at their wit's end.”

— Dr. Marketa Wills, CEO, American Psychiatric Association (NBC News)

What’s next

The judge in the case will decide whether to allow the lawsuit against EmblemHealth to proceed as a class action.

The takeaway

This lawsuit highlights the widespread problem of 'ghost networks' in health insurance, which has long prevented patients from accessing the mental health care they need. The case could set an important precedent for holding insurers accountable for inaccurate provider listings, especially for those with government-sponsored health plans.