Privacy & Control
Many people that receive mental health treatment utilize insurance to help pay for the cost of their therapy; but that will lead to a paper trail (treatment plans, assessments, 90 day reviews and/or therapy notes) which becomes an everlasting record about the client. Insurance companies have the right to find out any information about clients. A diagnosis is required when a therapist bills insurance, which has a tendency to label people. This then becomes a permanent health record and all people involved in processing claims for the insurance company will know this information as well. The insurance company can request any information that is necessary to improve coverage and this will more than likely follow the client throughout their lifetime when receiving any kind of medical or mental health care.
On the other hand; when a client pays cash for their therapy services the information that is provided will only be available to the therapist the client is working with and no one else. When paying cash the treatment plans, assessments, notes and reviews are only designed to help the client and does not have to be shared. Finally, paying cash offers clients a maximum privacy safeguard.
Copays and Deductibles
Most of the insurance companies that offer mental health coverage involve a deductible being met that can cost a large amount of money per year. Many clients are required to pay an out-of-pocket amount before services can be covered. Some insurance companies will put the amount paid for services towards the deductible. After the deductible is met, some insurance companies will continue to charge a copayment fee for every therapy session which can be very costly every year.
In Summary
Now clients can see the many advantages of paying cash for psychotherapy. The first reason is that clients take control of who is creating or receiving their mental health records. Second, paying out-of-pocket costs will offer the ultimate privacy safeguard. Thirdly, the client will have more availability options for scheduling therapy sessions. Fourth, the client has the ability to choose the therapist that is right for them and is not limited to a list of therapists the insurance companies authorizes. Fifth, there will also be no more meeting deductibles and/or paying copayments to the insurance company, which add up to a great deal of money every calendar year.