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Home Politics & Law

Lawmakers Trying to Remove Licensing Hurdles for Social Workers

Legal navigation at its finest

Jeffrey A Singer by Jeffrey A Singer
February 24, 2024
in Politics & Law
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Lawmakers Trying to Remove Licensing Hurdles for Social Workers

Getty Images

Behavioral health providers can deliver effective mental health services using telehealth technology. Yet state licensing laws block people from accessing telehealth services from providers who hold out‐​of‐​state licenses.

According to the Health Resources and Services Administration, social workers accounted for more than 239,000 of the roughly 786,000 total behavioral health workforce in 2017. Social workers comprise 45 percent of Department of Defense mental health professionals caring for military personnel and their spouses and see 42 percent of all encounters in the military that involve mental health or substance abuse problems. In the US, mental health problems continue to grow among all age groups, leading a recent gathering of seven US Surgeons General to declare it a crisis.

In 2021, Arizona lawmakers passed landmark “universal telehealth” legislation allowing any health care practitioner with an out‐​of‐​state license to provide telehealth services to Arizonans without applying for an Arizona license. Since then, six other states have passed similar laws. Unfortunately, no state counts social workers among the out‐​of‐​state health care practitioners who may provide telehealth services to their residents. So, people in those states who want to access social workers for behavioral health counseling are out of luck.

Now, social workers are seeking to convince lawmakers in 27 states to establish an interstate compact that will provide social workers with a license recognized by all states in the compact. So far, Missouri and South Dakota have joined the compact. Arizona lawmakers are considering SB 1036 during the current legislative session, which, if passed, would add Arizona to the compact. Colorado may soon join the compact as well, as its lawmakers are considering HB24-1002. When five states have joined, a compact commission will be able to establish requirements for social workers to apply for a compact license. Social workers who don’t want a compact license can opt to be licensed only in their state.

In 2019, Arizona was the first state to enact “universal license recognition,” enabling people who relocate to Arizona with out‐​of‐​state occupational or professional licenses to work without applying for an Arizona license. By 2023, 14 states passed similar laws. Unlike Arizona, some states don’t require holders of out‐​of‐​state licensees to relocate there.

Ideally, states should repeal all licensing laws and allow third‐​party certification organizations to perform licensing boards’ functions. If that is not politically feasible, all 50 states and the District of Columbia could enact universal license recognition that doesn’t require out‐​of‐​state licensees to move to their states permanently. Unfortunately, American patients will have to wait a long time before seeing anything resembling either of these two outcomes.

In the meantime, by creating a sizeable interstate compact that lets people in all member states access service providers, lawmakers are taking a big step toward liberating patients from protectionist licensing laws that are a relic of a bygone era.

Whether they pass universal license recognition laws, universal telehealth laws, or multi‐​state compacts, state lawmakers continue to create licensing law workarounds. In the process, they tacitly acknowledge that licensing laws block access to care.

Source: Cato At Liberty
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Jeffrey A Singer

Jeffrey A Singer

Jeffrey A. Singer is a senior fellow at the Cato Institute and works in the Department of Health Policy Studies. He is President Emeritus and founder of Valley Surgical Clinics Ltd., the largest and oldest group private surgical practice in Arizona, and has been in private practice as a general surgeon for more than 35 years.

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Most employers are unknowingly steering their health plans toward higher costs and reduced control — until they understand how fiduciary missteps and anti-competitive contracts bleed their budgets dry. Katie Talento, a recognized health policy leader, reveals how shifting the network paradigm can save millions by emphasizing independent providers, direct contracting, and innovative tiering models.

Grounded in real-world case studies like Harris Rosen’s community-driven initiative, this episode dives deep into practical strategies to realign incentives—focusing on primary care, specialty care, and transparent vendor relationships. You'll discover how traditional carrier networks are often Trojan horses, locking employers into costly, opaque arrangements that undermine fiduciary duties. Katie breaks down simple yet powerful reforms: owning your data, eliminating conflicts of interest, and outlawing anti-competitive contract clauses.

We explore how a post-network framework—where patients are free to choose providers without restrictive network barriers—can massively reduce costs and improve health outcomes. You'll learn why independent, locally owned providers are vital to rebuilding trust, reducing unnecessary procedures, and reinvesting savings into the community. This conversation offers clarity on the unseen legal landmines employers face and actionable ways to craft health plans built on transparency, independence, and aligned incentives.

Perfect for HR pros, benefits advisors, physicians, and employer leaders committed to transforming healthcare from the ground up. If you’re tired of broken healthcare models draining your budget and frustrating your staff, this episode will empower you to take control by understanding and reshaping the very foundations of employer-sponsored health. Discover the blueprint for smarter, fairer, and more sustainable benefits.

Visit katytalento.com or allbetter.health to connect directly and explore how these innovations can work for your organization. Your path toward a healthier, more cost-effective future starts here.

Chapters

00:00 Introduction to Employer-Sponsored Health Plans
02:50 Understanding ERISA and Fiduciary Responsibilities
06:08 The Misalignment of Clinical and Financial Interests
08:54 Enforcement and Legal Implications for Employers
11:49 Redefining Networks: The Post-Network Framework
25:34 Navigating Healthcare Contracts and Cash Payments
27:31 Understanding Employer Health Plan Structures
28:04 The Role of Benefits Advisors in Health Plans
30:45 Governance and Data Ownership in Health Plans
37:05 Case Study: The Rosen Hotels' Health Model
41:33 Incentivizing Healthy Choices in Healthcare
47:22 Empowering Primary Care and Independent Providers
The Hidden Costs Employers Don’t See in Traditional Health Plans
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