Does Health Insurance Cover Therapy?

Yes, health insurance covers therapy. Under the Mental Health Parity and Addiction Equity Act of 2008, all commercial health insurance plans in the United States must cover mental health treatment, including psychotherapy and counseling, at the same level as medical and surgical benefits. This means your insurance plan includes coverage for therapy sessions with a licensed mental health counselor, subject to your plan’s copay, deductible, and network requirements. Medicaid and Medicare also cover therapy.

The Covid-19 pandemic has put mental health front and center. Mental health break is now part of our culture. Self-care is celebrated. The “Treat yo’Self” ethos popularized a decade ago in the Parks and Recreation TV-Show has penetrated deep into our collective consciousness.

Talk therapy is hardly taboo anymore, particularly in big cities like New York. Especially among younger folks. Yet, we are not quite at the point where one would go see a shrink as readily for anxiety as one would see a podiatrist for a broken toe.

One obstacle is the persisting perception that talk therapy is not covered by insurance. There are a few good reasons why this perception is so sticky. Chief among them is the reality that it is so hard to find a good therapist that accept insurance – side note: this is where we come in: Our therapists at Manhattan Health Counseling are really good and accept insurance

Another reason is that insurance companies do a really good job at obfuscating that insurance cover therapy, what your co-pay and deductible are, if any, and whether there is a session cap – there usually isn’t.

Insurance Plans That Cover Therapy at MMHC

Insurance	Covers Therapy?	In-Network with MMHC?	Typical Copay
Aetna	Yes	Yes	Varies by plan, deductible often waived
Cigna	Yes	Yes	Varies by plan
United Healthcare	Yes	Yes	Varies by plan
Healthfirst	Yes	Yes	Varies by plan
BlueCross BlueShield	Yes, by law	No	N/A at MMHC
Medicaid	Yes	Check plan	Often $0
Medicare	Yes	Check plan	Varies

Note: Copay and deductible amounts depend on your specific plan. Contact MMHC at 212-960-8626 and we will verify your benefits before your first session.

How Mental Health Insurance Coverage Became Law

Starting in 1996 with the enactment into law of the Mental Health Parity Act, insurance companies had to start providing the same level of benefits for mental illness, serious mental illness or substance abuse as for other physical disorders and diseases. This law, which was further expanded in 2008, turn mental health care into essential services that insurance companies had to cover just as well as physical health.

So does Health Insurance cover therapy? Yes! It is now covered by virtually all commercial Medicaid plans.

As Healthcare.Gov, the government’s website, states:

“All plans must cover: Behavioral health treatment, such as psychotherapy and counseling…”

So does insurance pay for therapy sessions?

The answer is yes. All insurance plans must cover therapy.

However, whether you you have a copay or deductible for therapy will depend on your plan. Read more to find out what are the best insurance for therapy.

Now that we’ve hopefully dispelled this misconception, let’s discuss the next challenge: finding a therapist that accepts insurance AND that is a good fit for you.

Therapy is wonderful tool for healing from anxiety, depression, trauma and other mental health disorders. But it only works well with a commitment on your part of showing up every week and a strong bond with the therapist that you are working with. Vulnerability require safety. A feeling that you can reveal all of who you are without a mask. Don’t force the connection if it is not there. Pay attention to what it feels like to be with the therapist.

Using your health benefits for weekly psychotherapy is a smart way to make the most of your benefits and progress toward greater health and happiness.

The therapists at Manhattan Mental Health Counseling are compassionate, skilled, and ready to help you explore the depths of your emotional well-being. We prioritize easy access for our clients and accept a wide range of insurance plans, such as: Aetna, Cigna, United Healthcare and Healthfirst. Can’t make it into our office for in-person appointments? No problem. We are more than happy to provide online sessions in the comfort of your own home. Contact us today by calling 212-960-8626 or by filling out our online contact form.

Frequently Asked Questions: Does Insurance Cover Therapy?

Does health insurance cover therapy?
Yes. The Mental Health Parity and Addiction Equity Act of 2008 requires all commercial health insurance plans to cover mental health treatment, including psychotherapy, at the same level as medical benefits. Medicaid and Medicare also cover therapy.

What insurance plans does MMHC accept?
Manhattan Mental Health Counseling is in-network with Aetna, Cigna, United Healthcare, and Healthfirst. We do not accept BlueCross BlueShield. Contact us at 212-960-8626 to verify your specific plan.

Do I need a referral from my doctor to see a therapist?
In most cases, no. You do not need a pre-authorization or referral from your primary care physician to see an in-network therapist. You can call MMHC directly to schedule an appointment.

How much does therapy cost with insurance?
Your cost depends on your plan’s copay and deductible. Some plans waive the deductible for mental health visits, meaning you only pay the copay. Others require you to meet your deductible first. MMHC verifies your benefits before your first session so you know your cost upfront.

Is there a limit on how many therapy sessions insurance covers?
In most cases, there is no session limit. As long as there is a medical necessity, your insurance will cover ongoing therapy. MMHC’s therapists provide the necessary documentation to support coverage.

Does Medicaid cover therapy?
Yes. Medicaid covers mental health treatment, including psychotherapy, in all states. Coverage details vary by state and plan. In New York, Medicaid beneficiaries can access therapy through MMHC if their plan is in-network.