Mental Health ‘Ghost Network’ Case Allowed to Mostly Proceed

A case alleging Elevance Health division Carelon Behavioral Health Inc. lies about the scope of its mental health network can mostly proceed, a federal judge in New York ruled Tuesday.

A trio of people enrolled in the New York State Health Insurance Program sued Carelon in April 2025 in the US District Court for the Southern District of New York, alleging the insurer fraudulently misrepresented the number of mental health providers it has in-network.

Mental health coverage is under heightened scrutiny as insurers and regulators struggle to address the country’s growing mental health needs. The case is one of several ...