Is there any truth to the fact that in order to be covered by medical insurance in the USA, mental disorders have to have a DSM entry for medical coding practic

Is there any truth to the fact that in order to be covered by medical insurance in the USA, mental disorders have to have a DSM entry for medical coding practices, and that this has created a plethora of acronyms, or other labels for phenomenon that haven't really been sussed out as actual disorders? I have heard many people over the years reference the DSM as some way validating a phenomenon or label applied to themselves by their therapist or self-diagnosed.