Medibank to invest extra $50m into mental health, including MDMA trial

Medibank will pump an extra $50m into mental health over the next five years, with the funding to support a raft of initiatives including an innovative trial involving psychedelics.

Medibank will pump an extra $50m into mental health over the next five years, with the funding to support a raft of initiatives including an innovative trial involving psychedelics.

Chief executive David Koczkar has declared the current mental health system is “not fit for purpose” and called on the government to invest in prevention.

He said the system was actually creating bigger societal issues for future generations by not having effective preventive strategies in place.

“We need to do more now,” he said. 

Medibank has allocated $10m to a psychotherapy program for eligible customers with acute mental health conditions such as PTSD, collaborating with the Australian National University to look at clinical outcomes as well as broader economic impacts.

Medibank chief executive officer David Koczkar. Supplied

In 2023, the Therapeutic Goods Administration permitted prescribing MDMA for treatment of PTSD and psilocybin, also known as magic mushrooms, for treatment-resistant depression.

The substances can be accessed by approved psychiatrists and in clinical trials.

“We will share our findings from the psychotherapy program, so that the broader community can benefit,” Mr Koczkar said.

“The psychotherapy trial we want to work on is really trying to tap into some of the latest approaches to addressing mental health conditions.”

Mr Koczkar as one of the largest health companies in Australia, it saw the human cost of the escalating mental health crisis and wanted to play a meaningful part of the solution.

“Our mental health system is at breaking point; in many parts it’s broken,” he said. 

“The number of people with mental ill-health is growing at an alarming rate, despite continued investments and reviews into the sector.   

“What we are doing now is clearly not working and is only going to get worse if we continue on the current trajectory.   

“Growth Distillery research has revealed a number of generational gaps with having mental health conversations.”

He said it was concerning to see one in three parents of 16 to 30 year olds had never had a conversation about their own mental health with their children.

“This highlights the need for better communication strategies that break down the barriers and encourage understanding and empathy across all age groups, especially within our families,” Mr Koczkar said.

“To help improve mental health outcomes in Australia and alleviate the pressure on an acute sector in crisis we must prioritise investment in preventive care and improve mental fitness and community-based acute care pathways.”

The health insurer said it would also give customers more choice in mental health providers and unlock a range of new “mental fitness” prevention initiatives.

Medibank will offer a number of self-paced digital mental health prevention programs, and said it would be the first health insurer in Australia to pay benefits towards pharmacogenetic testing, which can help determine how a patient may respond to mental health medicines. 

The company said it would also collaborate with organisations like batyr, the Black Dog Institute, Orygen and Flying Fox to find solutions.   

Can We Talk? is a News Corp awareness campaign, in partnership with Medibank, helping Australian families better tackle mental wellbeing. To follow the series and access all stories, tips and advice, visit our new Health section.

Originally published as Medibank to invest extra $50m into mental health, including MDMA trial