How do I pay for therapy?

So, you're thinking about diving into therapy, but there's one big question looming over you: how do you actually pay for it? Or maybe you’re even wondering, can I even afford to pay for it?

Don't worry, you're not alone in wondering about this. Figuring out the financial side of therapy can feel like navigating a maze blindfolded. It's totally normal to feel a little overwhelmed or unsure about where to start.

If you’ve come to the place where you’re ready to start your therapy journey, that takes a lot of courage. I don’t want finances to be the thing to stop you, especially when there are so many resources available that you might not be aware of.

Let’s break it down. In this blog post, we're going to look at several strategies to pay for treatment. Whether you're dipping your toes into therapy for the first time or you're a seasoned pro, understanding the ins and outs of paying for therapy is key to making it work for you. So, grab a cup of tea (or coffee, no judgment here!) and let's dive in together.

Using Insurance

If you have health insurance, this is a great place to start the process. There’s two ways you might be able to use your insurance to pay for treatment.

1. In-Network Benefits:

• Check Your Coverage: Start by reviewing your insurance policy to see if it covers mental health services and therapy. Look for terms like "behavioral health," "mental health," or "counseling" in your plan documents. You can also call member services to find out.

• Find In-Network Providers: Look for therapists or counselors who are considered in-network with your insurance provider. You can usually find a list of in-network providers on your insurance company's website or by calling their customer service. You can also filter results by insurance on search engines like “Psychology Today.”

• Verify Coverage: Before scheduling an appointment, it's essential to verify your coverage with both the therapist's office and your insurance provider. The cost of your sessions might not be immediately covered, you may have to hit a deductible, and usually you will have an ongoing co-payment amount. Ask about copayments, deductibles, and any limitations on the number of sessions covered with your insurance carrier.

• Submit Claims: After each therapy session, your therapist will submit a claim to your insurance company on your behalf. Make sure to provide accurate information, such as your insurance ID number, to ensure smooth processing.

• Monitor Your Benefits: Keep track of your remaining benefits for the year, including deductibles and copayments. Understanding your plan's limitations can help you budget for therapy sessions effectively. Often insurance companies will have tools to help you do this on your online account.

2. Out-of-Network Benefits:

If you find a therapist you like but you notice they don’t accept your insurance plan, that doesn’t automatically mean that your insurance won’t pay for sessions. It doesn’t apply to all insurance plans, so you will have to verify it, but a good number of plans will have something call “out of network benefits.”

• Understand Your Coverage: Oftentimes an out of network therapist will cost you more out of pocket than one who is INN, but that’s not always true. You will have to call your insurance to ask if you have the benefits, what your deductible is, and what percentage of the fee they will cover out of network (might be up to 80-90% of what the therapist charges). Compare what’s leftover to what your in network co-pay would be — it might be a huge difference but they may be comparable. Bear in mind, it’s common for out of network treatment that you have to pay the full fee up front and then will have to wait to be reimbursed the 80-90%.

• Find a Therapist: Search for therapists who meet your needs and preferences, regardless of whether they are in-network or out-of-network. Many therapists will provide a superbill or receipt that you can submit to your insurance company for reimbursement.

• Submit Claims for Reimbursement: After paying for your therapy session upfront, you'll need to submit a claim to your insurance company for reimbursement. Include the therapist's information, session dates, and the amount paid. Some therapists will do this process for you, or provide you with online tools that will handle claim submission for you (they take a percent fee of your reimbursement, but then you don’t have to pay the full amount up front). Check out:

  • Mentaya

  • Thrizer

• Keep Documentation: It's crucial to keep detailed records of your therapy sessions and payments, including receipts, super-bills, and any communication with your insurance company. This documentation will support your reimbursement claims.

• Follow Up: After submitting a claim, follow up with your insurance company to track the status of your reimbursement. Be prepared for potential delays or requests for additional information.

Using insurance, if you have it, can be a great tool to pay for treatment. But what happens if you don’t have insurance or you have poor insurance?

How to Pay for Therapy Without Using Insurance

There are several resources to look into if you don’t have health insurance or your health insurance coverage is poor (which seems to too often be the case!)

• Community Mental Health Centers: Many communities have mental health centers or clinics that offer therapy services on a sliding scale based on income. These centers may also offer free or low-cost group therapy sessions. Google “community mental health centers near me”.

• Non-Profit Organizations: Look for non-profit organizations or charities that provide mental health support services. They may offer counseling or therapy at reduced rates or on a donation basis.

  • E.g. Loveland Foundation: Loveland Foundation offers $120 vouchers to help pay for treatment for black women and girls.

  • Do some exploring online and you may find similar resources you can utilize.

• Open Path Collective: I don’t recommend using some of the massive online therapy practice you will often see advertised (but shall not be named!). If you see low cost therapy offered by a national tech company, there is a high likelihood that therapists are being overworked, underpaid, and not given the conditions to do good work. However, I do recommend Open Path Collective — this is a site where therapists who have their own practices come to intentional donate sessions at a reduced rate. Sessions cost between $30-$70 for individuals and $40 - $80 for couples.

• Therapist Directories: Explore therapist directories or databases that list mental health professionals offering discounted rates or pro bono services. Some therapists may offer reduced fees for clients experiencing financial hardship.

A couple special considerations:

You may end up working with a student therapist or a pre-licensed therapist: These therapists can offer great services and are working under the guidance of another fully licensed professional. I highly recommend giving them a chance. It may be hit or miss, but remember that if you don’t feel like you’re working well with the therapist you can always ask to switch to another provider. On the other hand, you may end up working with a very talented therapist who is also benefitting from the knowledge of their supervisor.

Consider asking the therapist you want to work with if they have reduced fee spots available: If you’re willing to put in the time and call therapists that you would like to work with, and explain your financial situation, there’s a chance one of those therapist will have a sliding scale spot available in their practice. It never hurts to ask. I wouldn’t expect every therapist you call to have one of those spots, but in private practice it’s not uncommon, you may even see something on their website about it.

It’s overwhelming to figure out the finances for therapy, but hopefully after reading this you have multiple ideas for how to get started.

Whether you have insurance or not, there are many options to find a therapist that will help you. The hardest part is just getting started.

The best way to tackle an overwhelming process is by taking it one step at a time. Pick one thing, and begin there.

I’m wishing you the best in your process and hoping you find what you need soon!