MVP Settles for $250K Over ‘Ghost’ Mental Health Provider Networks
September 17, 2025 | JacobiJournal.com — The ghost provider network case against MVP Health Care has resulted in a $250,000 settlement with the State of New York, with reimbursements for members who were misled by inaccurate mental health provider directories. The case revealed widespread “ghost networks,” where listed providers were either unreachable, not accepting patients, or no longer affiliated with MVP’s network. According to investigators, the ghost provider network problem created serious barriers for policyholders seeking mental health care. Many members reported spending hours contacting providers listed in MVP’s directory, only to discover those doctors were unavailable or had never been in the insurer’s network. This deceptive gap in access not only delayed treatment but also forced some patients to pay higher out-of-network rates or go without care entirely, highlighting the real-world consequences of inaccurate insurance listings. Misleading Directories Spark Accountability According to state officials, MVP’s mental health directories exaggerated the availability of care, leaving members struggling to access essential services. Regulators argued that such misleading practices deprived individuals of timely treatment and undermined trust in the insurance marketplace. According to state officials, MVP’s mental health directories exaggerated the availability of care, leaving members struggling to access essential services. Regulators argued that such misleading practices deprived individuals of timely treatment and undermined trust in the insurance marketplace. In many cases, members who relied on the ghost provider network were forced to pay out-of-pocket for urgent mental health visits or face long delays in finding real providers. Consumer advocates stress that these false listings not only misled policyholders but also placed additional strain on an already limited mental health workforce, further worsening access challenges across New York. Broader Problem With Ghost Networks Consumer advocates have long warned that ghost provider networks create barriers to care, particularly in mental health. When patients cannot find real providers despite being promised coverage, they are often forced to pay out-of-network costs or forgo care altogether. Consumer advocates have long warned that ghost provider networks create barriers to care, particularly in mental health. When patients cannot find real providers despite being promised coverage, they are often forced to pay out-of-network costs or forgo care altogether. The issue is especially harmful for vulnerable populations, including individuals in crisis or those living in rural areas with already limited access to mental health professionals. Experts note that the persistence of ghost provider networks not only undermines confidence in insurance companies but also perpetuates inequities in care, where those with fewer resources face the greatest obstacles to treatment. New York’s Enforcement Action The settlement requires MVP to overhaul its directory practices, ensure provider accuracy, and compensate affected members. Regulators say the agreement sends a clear message to insurers that deceptive listings will not be tolerated. Implications for Policyholders This case highlights growing scrutiny over insurer practices nationwide. State agencies and federal regulators have pledged stronger oversight to protect patients from false claims of network adequacy. The outcome could encourage further reforms across the health insurance industry. For more information on healthcare consumer protections, visit the New York State Department of Financial Services. FAQs: MVP Ghost Provider Network Settlement What is a ghost provider network? A ghost network occurs when insurance directories list providers who are not actually available, leading to false impressions of coverage. How much will MVP pay under the settlement? MVP agreed to pay $250,000 to New York State and reimburse affected policyholders. Why are ghost networks a problem? They prevent patients from accessing timely care, force higher out-of-network costs, and undermine mental health treatment access. What changes must MVP make after the settlement? MVP must update its directories, verify provider participation, and improve oversight to ensure accurate listings. Subscribe to JacobiJournal.com for exclusive updates on healthcare fraud, insurance litigation, and public integrity cases. 🔎 Read More from JacobiJournal.com: