The executive director and medical director of Cerebral, David Mou.
Cerebral
Health insurer Aetna is canceling its in-network contract with Cerebral in August, the mental health startup’s CEO told employees Wednesday.
“We received notice from Aetna of their decision to terminate our provider contract without cause and discontinue coverage of Cerebral’s services, effective August 21, 2022,” wrote Cerebral CEO David Mou, who previously reported. served as the company’s medical director, in a message to employees. “We are still seeking an explanation for Aetna’s decision.”
Cerebral, valued at $4.8 billion after a $300 million funding round led by SoftBank last year, is under investigation by the Justice Department in connection with its prescription of controlled dangerous substances, including stimulants such as Adderall. Co-founder and CEO Kyle Robertson was fired by the board last month and employees are preparing for a round of layoffs.
Cerebral was considered in-network with Aetna in 45 states, according to a published list on the company website. “We are very disappointed in Aetna’s decision,” Mou wrote, adding that 50% of the more than 1,000 Aetna members diagnosed with serious mental illness showed “significant clinical improvement” during their treatment with Cerebral. He added that he hoped Aetna would “reconsider their decision.”
A Cerebral spokesperson confirmed Aetna’s termination notice. Aetna did not immediately respond to a request for comment.
On May 4, Cerebral received a subpoena from the United States Attorney’s Office for the Eastern District of New York related to “possible violations of the Controlled Substances Act.” Federal law regulates the prescription of medications that have the potential for abuse and dependence, including stimulants and benzodiazepines. A Cerebral spokesperson previously said the company “continues to cooperate with the Department of Justice in this investigation.”
Aetna’s parent company, CVS Health, said The Wall Street Journal would stop filling prescriptions for controlled dangerous substances for Cerebral patients last month. A Cerebral spokesperson confirmed that CVS Health, Walmart and online pharmacy Truepill have stopped filling these prescriptions for Cerebral patients.
Last week, Mou told Cerebral employees that the planned layoffs at the company were unrelated to problems around the prescription of controlled dangerous substances. “The company is in good shape,” he said at an employee town hall. “We are in an economic recession and, therefore, all companies must necessarily be more conservative.”
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