The Colorado Psychedelic Mushroom Experiment: A New Era of Mental Health Treatment?
- Kiwi Stonkadoo
- Mar 28
- 6 min read
The winds of change are blowing through Colorado, where a historic experiment in the use of psychedelic mushrooms for therapeutic purposes is well underway. Colorado, which recently passed Proposition 122 in 2022, is now leading the way in offering state-regulated psychedelic mushroom treatments.
In the coming months, the state will open its first licensed "healing centers," where psychedelic mushrooms can be safely consumed under professional supervision. This initiative follows Oregon's similar move in 2020, but with its own unique structure. As more states consider following suit, Colorado’s model is quickly becoming a pivotal example for the nation and potentially the world.
Psychedelic mushrooms, specifically those containing psilocybin, have historically been classified as Schedule I substances under federal law, making them illegal except in clinical research settings. However, this federal prohibition has not stopped state-level reform efforts.
In 2022, Colorado voters approved Proposition 122, which legalizes the therapeutic use of psilocybin and other natural psychedelics such as DMT and mescaline. The state's program aims to provide structured, legal access to these substances under professional supervision, thus avoiding the risks associated with self-administration or unregulated use. Colorado's rollout is expected to include not only healing centers but also specific guidelines for licensed facilitators and licensed psilocybin cultivation.
As of March 2025, Colorado has received applications for various types of licenses related to psychedelic mushrooms, including 15 healing center licenses, nine cultivation licenses, four manufacturing licenses, and one testing facility license. These licenses are essential to ensuring that psilocybin use remains both regulated and safe for therapeutic use.
While the cost of the mushrooms themselves is relatively low, the services surrounding their administration contribute significantly to the price of treatment. Facilitators, for example, are required to undergo extensive training to screen participants for mental health conditions, provide informed consent, and offer post-session monitoring. This training can be expensive, with facilitators paying a $420 training fee and an annual licensing fee of around $900. However, the training costs can easily exceed $10,000 due to the required 150 hours of accredited coursework and 80 hours of hands-on experience. This makes entering the field financially prohibitive for many individuals, limiting the pool of licensed facilitators available.
The cost for patients seeking psilocybin treatments is also significant. While the mushrooms themselves are not prohibitively expensive, the cost of a session—including a facilitator’s time, pre-session consultations, and post-session integration meetings—can range from $1,000 to $3,000.
In Oregon, similar pricing has been seen, with many sessions costing between $2,000 and $3,000, a price that typically does not include insurance coverage. Facilitators will generally be required to monitor participants for several hours as they consume the mushrooms, followed by a meeting to help integrate the experience. To mitigate these high costs, healing centers in Colorado are looking into offering sliding-scale payment options and group sessions to make the treatment more affordable for low-income patients, veterans, and Medicaid enrollees.
Given that psychedelic mushroom treatments are still new and considered "experimental," insurance coverage remains a major hurdle.
It is unlikely that insurance will cover the cost of psilocybin sessions in the near future, especially since psilocybin is not yet approved by the FDA for widespread use. As such, those seeking psilocybin therapy must be prepared to pay out of pocket, a situation that has sparked significant debate on how to make these treatments more accessible to a wider population.
Psilocybin has shown remarkable promise in treating mental health disorders, especially depression, anxiety, and post-traumatic stress disorder (PTSD). Several clinical trials over the last five years have indicated that psilocybin can offer significant, long-lasting improvements for patients suffering from treatment-resistant major depressive disorder (MDD). The FDA even designated psilocybin as a "breakthrough therapy" due to the promising results. This designation is typically granted when early clinical evidence suggests that a treatment may offer significant advantages over existing therapies.
The compound works by altering brain activity and promoting neuroplasticity, which allows the brain to "reorganize" itself in response to new experiences. This is particularly beneficial for individuals struggling with rigid thought patterns, such as those seen in depression or anxiety disorders.
Joshua Woolley, an associate professor of psychiatry at the University of California, San Francisco, has observed in clinical trials that psilocybin helps patients "become unstuck," often enabling them to change deeply ingrained thought patterns. Psilocybin, when combined with psychotherapy, can provide patients with new insights into their condition and help them adopt healthier coping strategies.
Despite the promising research, experts caution that more extensive clinical trials are needed, particularly to understand how psilocybin interacts with patients who have psychiatric conditions such as bipolar disorder, schizophrenia, or a family history of psychosis. Furthermore, side effects like nausea, headaches, and anxiety are common in the initial phases of treatment, though they generally resolve within a few days.
The safe administration of psilocybin is a central focus of Colorado’s program. Licensed facilitators are trained to screen for mental health conditions and are required to monitor patients during their psychedelic experience. Facilitators are not mental health professionals by default but are trained to recognize potential mental health crises and to offer support as necessary. The state also mandates a 24-hour pre-session screening to assess participants’ suitability for the treatment and to ensure that there are no underlying conditions that might make the therapy unsafe.
While the overall risks of psilocybin therapy are considered low in supervised clinical settings, concerns have arisen in areas where regulation is either weak or non-existent. Adverse effects such as anxiety, panic, or existential distress can occur during a psilocybin experience, and these can sometimes persist for weeks or months if not properly managed. As such, integrating psilocybin into mental health practices is a delicate endeavor requiring careful oversight.
The use of psychedelic mushrooms is not new, and their historical significance cannot be ignored. Indigenous cultures in North and South America have used psilocybin mushrooms for thousands of years in religious and ceremonial contexts. Colorado law recognizes the cultural importance of these mushrooms and includes provisions to prevent exploitation of Indigenous traditions. The state has ensured that natural medicine is used in a way that does not disrespect the cultural practices of federally recognized tribes. This is particularly important as the commercialization of psilocybin threatens to overshadow its traditional uses.
Indigenous rights groups and advocates argue that proper recognition of these cultural practices is crucial for maintaining the integrity of psilocybin’s spiritual and ceremonial role.
Some advocates worry that commercialization could lead to the cultural appropriation of psilocybin mushrooms, with corporate interests profiting from a plant medicine that has been sacred for centuries.
Looking ahead, the potential for other plant-based psychedelics such as mescaline and DMT to enter the therapeutic landscape is significant. Colorado, unlike Oregon, has allowed the integration of psilocybin into existing mental health practices, opening doors for professionals to use psilocybin alongside conventional therapies. The state’s forward-thinking approach could lead to broader access to these powerful compounds, offering new hope for patients who have not found relief through traditional medical interventions.
Sean Winfield, co-founder of Activated Brands in Arvada, Colorado, sees this burgeoning industry as one that could soon shift from the shadows into the light. Activated Brands provides equipment and training for people interested in growing psychedelic and functional mushrooms, offering kits for both hobbyists and those looking to cultivate psilocybin mushrooms legally in their own homes. Winfield believes that the current state of psychedelics is on the cusp of a paradigm shift, with new opportunities for businesses, patients, and researchers alike.
Colorado's psychedelic mushroom initiative represents one of the most exciting developments in mental health care in recent history. While the regulatory landscape is still evolving, the potential for psilocybin and other psychedelics to transform the way we approach mental health is undeniable. As research continues, and as more data is collected from state-regulated programs in Colorado and Oregon, we may soon see psilocybin-based treatments integrated into mainstream therapy options, offering new hope for those suffering from chronic mental health issues.
For now, Colorado’s experiment is providing a model that could shape the future of psychedelic therapy in the U.S. and beyond, blending scientific innovation with cultural sensitivity and clinical safety. As we witness this pioneering program unfold, it is clear that the use of psychedelics for mental health is more than just a trend—it's the beginning of a new chapter in mental health care.
Sources:
KFF Health News – "The Colorado psychedelic mushroom experiment has arrived" by Kate Ruder (Updated on: March 19, 2025).
National Institute on Drug Abuse (NIDA) – Information on psilocybin’s potential for treating depression and anxiety.
Oregon Health Authority – Data on psilocybin products sold and the success of Oregon's regulated psychedelic program.
University of North Carolina School of Medicine – William R. Smith’s comments on psychedelics outside clinical settings.
University of California, San Francisco – Joshua Woolley’s insights into psilocybin’s therapeutic applications in clinical trials.
Activated Brands – Details on the cultivation and sale of psychedelic and functional mushrooms in Colorado.
Healing Advocacy Fund – Tasia Poinsatte’s views on affordability and sliding-scale payment options for Colorado's healing centers.
FDA (Food and Drug Administration) – Psilocybin’s status as a breakthrough therapy for treatment-resistant depression.
Colorado Governor's Office – Information on the state's Natural Medicine Advisory Board and its role in regulating the psilocybin program.
The Nowak Society – Psychedelic advocacy group discussing upcoming changes and developments in Colorado's program.
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