Paying for Therapy--Should I Use Insurance?

A major concern people have about counseling is the fees. Therapists may charge anywhere from $75 to $150/hour. That is a lot of money! Then, if you're going weekly or even twice a week, it can add up quickly. You have insurance and you pay a lot for your premiums. So, you may be asking, "Why shouldn't I use my insurance?" It is best you understand the risks and benefits of using health insurance therapy before making a decision that may have negative consequences. Let's look at what using insurance may mean for you:

The Benefits

•Co-payments tend to be very low.
•Some insurance plans may relieve you of a co-payment altogether!

The Risks

•You must qualify for a mental disorder diagnosis, which would have to be disclosed to your insurance panel. The diagnosis becomes the focus of your therapy, rather than the reason you contacted your therapist in the first place.

•If you are trying to apply for life/disability insurance/private health insurance, your company will need to have access to any prior health information, which includes whatever mental disorder diagnosis provided during your therapy. This can effect eligibility and premiums.

•Depending on your plan, insurance panels may have case managers consult with your therapist to get ongoing sessions authorized. This case manager will ultimately decide whether your therapy is a "medical necessity." If they decide your therapy doesn't meet the criteria for "medical necessity," they can terminate your treatment benefits, possibly prematurely.

•Insurance companies may recommend you go in for a medication evaluation to determine if it would be beneficial to your treatment, even if it's not part of the treatment plan you and your therapist have agreed upon.

What This Means to You

Only you can determine whether the calculated risks to use insurance would be beneficial or not. If you want to keep your issues private and the paper trail to a minimum, look at the risks and benefits of using your insurance to pay for your therapy and determine if it is the right course of treatment for you.

While therapy can be an expensive venture, for many people, their therapy is fairly short-term, usually anywhere from 8 to 20 sessions, depending on the presenting issues, how much those issues are impacting your life and how hard you are willing to work to overcome the problem.

Whatever you decide, look at your options, what you want to get out of treatment, and ask your therapist about your options. Do your own research and make educated choices.