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A requirement for outpatient treatment of mental illness under Medicare is that the insured must have an approved condition. This means that the mental illness being treated must be one that Medicare recognizes as eligible for coverage. Medicare provides benefits for outpatient mental health services, including therapy and counseling, but only when the patient has a diagnosis that meets specific criteria outlined in Medicare regulations.

This criterion ensures that individuals receiving treatment have conditions that align with Medicare's coverage policies, allowing them to access necessary mental health services. This approach supports the principle that Medicare is designed to assist in the treatment of mental health disorders that are clinically significant and require professional intervention.

Other aspects, such as treatment location or the necessity for inpatient services, do not apply since outpatient treatment is expressly defined by the absence of an inpatient stay, focusing instead on eligibility based on the condition being treated.