Therapists taking insurance is a hot topic in the therapist community and something that is confusing to clients. I’m not here to argue or say what’s right or wrong but I can present the facts about insurance along with what my experience has been. I have been paneled with several insurances in the past and now am a private pay therapist. I have worked in treatment centers and have had plenty of experience with insurance in the past.
The thing that is important to remember is there is no right or wrong to therapists taking insurance. If you need to use your insurance, that’s totally understandable! I make choices for myself and my business that are best for me, and I want you to feel empowered to do the same for yourself.
Reasons why therapists don’t take insurance
Insurance companies reimburse therapists less than they do other professionals
The majority of insurance companies pay therapists far below what they pay other healthcare professionals with the same degree and experience. When you get paneled with certain insurance companies they make the therapist sign a contract but they might not disclose how much they will pay you. Therapists have gone to years of school and have student debt and bills to pay just like every other professional but insurance company pay really low rates for their services.
Insurance companies require a diagnosis
In order for insurance companies to agree to pay for your therapy sessions, they require the therapist to give you a diagnosis. That’s not a big deal to some people but having a diagnosis can be harmful. There are also many people that seek therapy because they want to improve themselves and feel better but they don’t necessarily have a diagnosis. Insurance companies will not pay for these people to go to therapy. The diagnosis that is given to you in therapy can impact your life and stay on your health records long after you’ve been treated for it. These diagnoses might prevent you from opportunities or experiences you might want in the future. Recently, I had an experience when applying for life insurance and they were required to know all mental health diagnoses, which could impact someone's ability to be insured.
Insurance companies dictate your care
Along with a diagnosis, insurance companies get to decide how long you see your therapist. They don’t want to have to pay for your treatment beyond what they need to. If they believe you don’t need therapy anymore they will not pay for it. Often times therapists are put in ethical dilemmas to make it seem like you are doing worse than they are so that insurance will pay for their sessions. Insurance companies will also only pay for certain issues but they won’t tell you what those issues are so if what you are struggling with isn’t one of those covered areas, they won’t pay for your session. This leaves you with a bill you didn’t expect or your therapist doesn’t get paid for the time they spent focused on helping you.
Insurance companies are not confidential
While therapists are required to abide by HIPAA and keep their information confidential, that doesn’t mean an insurance company will honor your confidentiality. Insurance companies have had thousands and thousands of HIPAA violations. Disclosing your information to a third party makes it easier for your information to not be protected once it leaves a therapist's hands. If you want a federal job, to join the military, or be a pilot, an insurance company can disclose your diagnoses.
Insurance companies can take months to pay the therapist
There’s no way around living without getting paid. As much care and compassion as I have for my clients, I can’t feed my family without money. It’s the world we live in, and it’s unfair to assume therapists don’t deserve repayment for their services in a timely manner. Insurance companies will take months and months to pay your therapist for your therapy session. When I was paneled with insurance, it took me six months to be paid by an insurance company. This is a practice that makes it so therapists don’t take insurance because they may never be paid.
Questions people ask about therapists and insurance
People have a lot of questions and assumptions about therapists not taking insurance. Here are some of the common ones.
Isn’t it unethical for therapists to not take insurance?
There is no ethical boundary for a therapist to take insurance. Therapists ethically need to be competent and have integrity. There are many questions for some people on how to support insurance companies who make billions of dollars every year while denying paying for their subscriber's healthcare or reimbursing their providers can be ethical. I don’t think there’s a right or wrong to accepting or denying insurance but it’s not unethical by any means to not accept insurance.
Do you just expect people to be able to pay your fee?
Nope. I don’t expect anyone to pay me anything. I’m never here to convince people to spend their money on seeing me as a therapist. I want you to make the decision that makes sense for your finances and for your lifestyle. It’s your choice what you do with your money, and I won’t tell you otherwise. I set my fee based on the number of how much I need to survive and give quality care to my clients. It’s not that I think I’m worth a certain dollar amount but it’s just a number to help me and my family survive.
I wholeheartedly believe therapy can change lives, and that is the exact energy I bring to my therapy sessions. I believe in my clients and their ability to transcend far beyond what they are struggling with. I have paid out of pocket for a loved one’s therapy for several years, and it’s worth it to me. That doesn’t mean that’s something that has to be important to you. Not taking insurance for a therapist saves them more time to focus on taking care of you rather than chasing down money from a claim.
Looking to start therapy for anxiety in Utah?
If you are struggling with anxiety and want to be able to find relief, I would love to be able to help! This Utah Counseling Practice has a therapist for anxiety specializing in anxiety therapy. To begin therapy follow the steps below:
Meet with an anxiety therapist
Find relief from anxiety symptoms
Other mental health services provided by Maple Canyon Therapy
Anxiety therapy isn’t the only mental health service provided by this Utah Counseling Clinic. Other mental health services provided by Maple Canyon Therapy include EMDR therapy, eating disorder therapy, body image therapy, binge eating disorder treatment, counseling for college students, and birth trauma therapy. Schedule a phone consultation to see how I can help!
Online Therapy in Utah
I know it can be hard to take time out of your busy schedule to drive to a therapy appointment. It’s also difficult when you might not a therapist in your town that treats the issues you are struggling with. This is why I provide online therapy in Utah. It’s just as effective as in-person therapy but without the inconvenience.
Online counseling allows me to work with clients no matter where they live in Utah. I work with clients in Provo, Salt Lake City, Logan, Cedar City, St. George, Heber city, and more.
About the Author
Ashlee Hunt is a licensed clinical social worker and founder of Maple Canyon Therapy in Utah. Ashlee has a master's degree in social work from Utah State University. She also has a bachelor's degree in psychology and a bachelor's degree in family life and human development from Southern Utah University. Ashlee has been working with women who have anxiety for over a decade. She loves to help the clients she works with deal with their anxiousness by utilizing self-compassion. She believes that anxiety can become far more manageable and doesn’t have to take over your life.