Why You Probably Shouldn’t Use Insurance for Counseling

There are many things that insurance is helpful for: car accidents, cancer, broken bones, etc. Counseling (therapy) is something that you should consider never using your insurance for unless absolutely necessary.

Here are just a few reasons to consider:

First, insurance companies require that everyone be given a diagnosis of a mental health disorder in order to pay for therapy. Contrary to popular opinion, HIPAA doesn’t keep your information completely confidential. Your diagnosis is something that is seen by multiple people at the insurance company, and can be shared with other insurance companies- life/disability/future health insurance companies, and the government. Some employers can even request you release the information to them. Some diagnoses can greatly increase your fees for insurance depending on the severity of the disorder. Also, some insurance companies will require you get a medication evaluation for your particular diagnosis, even if you do not want to take medication or if there is no real need for you to take medication. By not using your insurance for therapy, you ensure the most confidentiality possible for you, your spouse, your child, or whoever is in therapy.

Second, insurance companies will limit what your therapist can do to help you. Instead of being able to do what is best for you, insurance companies will tell your therapist how many sessions are appropriate for a given diagnosis, and some even limit which therapy modality is approved. Essentially, someone who has never met you will tell you what you need based on their company policy and their financial bottom line. By not using insurance you will be able to get the help needed for as long as is needed and without limitation.

Third, when people pay for therapy out of pocket, they have more emotional buy in and commitment to therapy. Paying with our own money tends to make us work harder and better appreciate the services we are paying for.  Plus, therapy is very affordable. Even at a rate of $100 per hour, you could get 30 hours of therapy (which is far more than the average time needed), for less than getting your kid braces, than two months of an average mortgage payment, about the same as some people pay for one big-screen television, WAY cheaper than a divorce, etc. How much is your wellbeing, happiness, marriage, child’s happiness etc. worth to you?

Fourth, not using insurance for therapy allows therapists to be flexible with our fees. Therapists can give significant discounts to cash paying clients people in times of need, or to help people continue therapy until they are in a better financial position. Insurance does not allow that flexibility.

Therapy is truly an investment. The relatively small amount of money is far outweighed by the life benefits. And by not using your insurance you ensure not only confidentiality, but opens a range of benefits for yourself or a loved one.

Remember, insurance has a place, but be very careful about using it for therapy. Once your information is sent into the insurance company, it is on file and is nearly impossible to have it removed. Use it wisely.