If you are among millions of people considering therapy, you may wonder whether health insurance can pay for therapy. The good news is that insurance can be used to cover some costs associated with therapy treatments.
This article highlights different types of therapy insurance, how much they pay, and the target group for therapy insurance. Read to learn more.
What is therapy insurance?
Therapy insurance is a type of health insurance used for therapy. The policy covers some costs associated with therapy treatments, including consultations, therapy sessions, and group therapy. Your insurance can cover the following types of therapies:
- Addiction treatments
- Outpatient therapy sessions
- Telemedicine or online therapy
- Detox services
- Psychiatric emergency care therapy
- Talk therapy —psychotherapy and cognitive behavioral therapy
- Therapies for co-occurring behavioral health and medical conditions
Since most insurance companies only cover “medically necessary” physical therapies, your insurers may conduct a mental health diagnosis to determine if you qualify for coverage.
Does insurance cover therapists?
Yes. Therapists can take insurance to protect their businesses from incurring hefty costs associated with property damage, liabilities, and other claims. One of the insurance policies they can purchase is general liability insurance for therapists that cover common risks like advertising injury, customer property damage, and customer injury. The policy will cover the costs of lawsuits, court settlements, and medical expenses resulting from accidents with a therapy facility.
They can also purchase professional liability insurance for therapists, which protects businesses against negligence claims or errors that occur while offering therapy services. If a therapist is sued for breaching the client’s confidentiality and privacy, harassing a client, or giving bad advice that causes harm to a client, professional liability insurance will cover the costs claims. 3.
Therapists’ properties are also covered by commercial property insurance. This insurance policy protects any property therapists use when offering their services, including equipment, electronics, furniture, vehicles, and even office buildings.
Does insurance pay for physical therapy?
Insurance can pay for physical therapy if the treatment offers the patient health or medical benefits. Most insurance plans, including workers’ compensation, private insurers, and Medicare, can pay for “medically necessary” physical therapy. There are, however, some conditions that patients need to meet to qualify for payment. For instance, the treatment sessions have to be offered by or under the supervision of a certified physical therapist.
The best way to find out if your insurance covers physical therapy is to call your insurance provider or check your insurance account online. You can also ask your therapist whether they will accept your insurance policy.
When it comes to the level of coverage, the amount you will get from your therapy insurance will vary based on your insurance provider and the insurance plan you choose. For instance, Medicare is the only insurance provider that reveals how much they pay for physical therapy. For instance, they pay around $30 for each procedure and $100 for a physical therapy session.
Unfortunately, other therapy insurance providers do not reveal how much they pay for physical therapy. They won’t let you know how much they will pay you until your application is accepted. One of the main reasons why insurers don’t reveal this information is that they keep changing their reimbursement rates daily due to various factors. They offer each client their contracted rate. Factors that will determine how much you will receive from your insurer include:
- The number of premiums you pay every month
- Your education level and specialization
- Your location—insurers usually pay less for over-served locales and more for under-served locations.
- Consumer demand and trends at the time of signing your insurance contract
What are the different types of therapy insurance? Who need it?
There are three common types of therapy insurance that most insurance companies provide. Let’s explore each one of this coverage to learn more about their requirements:
1. Deductible and coinsurance therapy insurance
This type of therapy insurance requires you to pay a certain amount of money out of pocket before the policy becomes active. Once the agreed amount, commonly known as the deductible, is paid, the insurer will start covering some costs associated with therapy. Under this policy, clients seeking therapy services must also cover a coinsurance after meeting their deductible.
2. Only co-pay therapy insurance therapy insurance
You will need to pay a flat fee for the therapy services received for each visit. Your therapy insurance provider pays the rest. Your insurance provider determines the percentage of the flat fee you will pay for each visit.
3. Deductible and co-pay therapy insurance
Under the co-pay insurance coverage, you will need to pay a certain amount out of pocket before their policy becomes active and then pay a flat fee for every visit you make to your therapist.