Beginners Guide to Mental Health Billing for Therapists 2025

During this approach, practices can look up details about your patient’s coverage that aren’t frequently listed on the insurance card. Even though many patients possess active coverage, the services might not be reimbursed as a benefit, so this step is essential to make mental health billing smoother. It is not always easy to know if you’ve met the required elements to code appropriately for the required reimbursement. It could be a good idea to break down the process into steps for new and established patients. As mentioned above, submitting the form is painful enough the first time; there’s no point in doing your job twice as hard and having to submit a second, third, or even fourth corrected claim.

File Claims via EHR

Mental health billing may seem daunting initially, but new providers can navigate the complexities smoothly with the right strategies. Behavioral and mental health care professionals have countless responsibilities to juggle. There are many different layers to medical billing and many regulations to adhere to, which can create a barrier between you and your patients. The intricate, repetitive billing processes can deprive you of the time and energy you have to prioritize your clients.

Re-File Insurance Claim As Corrected on CMS1500 Form

The psychiatric diagnostic evaluation, also known as a psych evaluation, is typically performed to evaluate patient’s medical and mental health. The patient’s behavior, thought process, cognitive skills etc will be examined, and provider will devise a treatment plan based on the patient’s readiness and capacity to react to treatment. By using an EHR like Healthie, therapists can reduce administrative stress, improve revenue cycle efficiency, and ensure compliance with insurance requirements. Whether handling billing in-house or outsourcing, leveraging a comprehensive platform streamlines operations and supports financial sustainability in private practice. Important documents are treatment plans, session notes, and diagnostic assessments.

Claim Denial

It involves checking for and correcting spelling and formatting errors. ANSI 837P is the accepted electronic format What is bookkeeping for practices that have to submit under the CMS1500 form. ANSI 837I is the accepted electronic format for facilities that have to use UB-04 claim submission forms.

• The first tip is to know your patient’s insurance plans and benefits before each visit.
• When these services are billed to health insurance, it is often a simple task because routine checkups are frequently under one general charge.
• This procedure will give you a better idea of your patient’s insurance plan and provide them with treatment and services accordingly.
• If you asked the USPS, they would tell you that first-class mail is one of the most secure ways to send anything sensitive.
• For complex services like a 70 minute emergency call and then a two hour emergency session at their home, you might have absolutely no idea how to bill that situation.
• Intuitive billing software makes it easier to customize your operations and maintain ongoing compliance.

What is Write-Off in Medical Billing? Understanding Its Impact on Revenue

In this guide, we’ll explain the basics of mental health billing, how reimbursement works, and give you virtual accountant tips to make the process easier. Whether you’re new to billing or just need a refresher, this guide will help you get on track and keep your practice running smoothly. A timely filing limit is one of the most common requirements placed on claim submissions.