How to pay for therapy
You want to go to therapy, whether relationship or EMDR. But how to pay for it? There are a few ways you can pay for therapy. Which one you choose depends on your situation.
1. Private pay. True private pay is when you pay out of pocket for therapy services and don’t seek reimbursement. The benefit of private pay is that the insurance company doesn’t get access to your records and can’t dictate how many sessions you may have. Clients may prefer to pay privately for a variety of reasons – confidentiality being often the most important. Paying with your Health Savings Account (HSA) and not seeking reimbursement falls under private pay.
2. Out-of-network insurance. When using out-of-network insurance benefits, you pay your therapist their fee. Your therapist gives you a detailed receipt, also referred to as “superbill.” You submit that detailed receipt to your insurance company for reimbursement. Most insurance companies will reimburse between 50 and 80% of the fee you’ve paid. By reimbursing you, the insurance company reserves the right to request your records and evaluate whether they will continue reimbursing you (i.e. whether they believe you need therapy).
Not all insurance plans provide out-of-network benefits for mental health. You’ll want to contact your insurance company and ask a few questions. This article talks about checking your out-of-network benefits.
3. In-network insurance. Many people who have medical insurance want to use it for mental health counseling. You’ll likely have a copay you’ll pay directly to your therapist, and you may have a deductible, then insurance will cover the remaining cost.
Using in-network insurance works well for services they cover. Until they don’t. If you don’t have a diagnosable condition, insurance won’t cover your treatment.
When you use insurance, whether in-network or out-of-network, the insurance requires specific types of information to be provided to them, otherwise they won’t pay for therapy services. They require your name, date of birth, address, your mental health diagnosis (e.g. depression, anxiety, etc.). Insurance may also require access to your treatment information – treatment plans, progress notes, and other information included in your chart.
4. Third party pays. Third party could be your parent, sibling, spouse or partner, or your adult child. Your employer may pay in certain situations (see below). Some non-profit organizations and churches will also pay for short-term therapy when you’re in need.
5. Employer pays. An employer is a third party. I’m listing them separately because many employers have different programs. One such program is an Employee Assistance Program (EAP). Under an EAP, you get between 6 and 24 sessions with a therapist that specifically works for that EAP. Typically, these sessions are free to you. The sessions have to be used within a specified time (usually a calendar year) and renew. There are a few other times an employer may pay for your therapy, but always consider whether your employer paying is in your best interest.
6. CareCredit is a credit card specifically approved for health-related expenses. You’ve likely seen CareCredit offered at dentist offices, hospitals, and private medical practices. What makes CareCredit different from other credit cards is that it’s designed specifically for health care services and products.