Consumer demand for insurance coverage in the mental health unit accelerated faster than expected — and beyond BetterHelp’s capacity — eating into its cash pay business. “Cash pay revenue declined faster than anticipated, while insurance revenue could not increase at a level sufficient to offset the cash pay decline,” Divita said. Dive Insight:Accepting health insurance in the direct-to-consumer mental health segment is a priority for Teladoc. “Higher demand, therefore, exceeded the capacity available to convert this into a greater number of paying users, completed sessions and revenue,” Divita said. Teladoc also maintained its full year insurance revenue guidance at BetterHelp instead of raising it, suggesting the capacity problem isn’t likely to be fixed this year, he added.