Should I use my health insurance to pay for therapy in Ann Arbor, MI?

Paying for therapy out-of-pocket or going through insurance is a personal decision. You may hit the jackpot and find an amazing therapist who takes your insurance and has the skills and expertise needed to treat the issue you’re coming to therapy for. Or, you might find an amazing therapist who doesn’t take your insurance, but who’s also a great fit and specializes in the therapeutic approach that can best meet your needs. Either way, insurance shouldn’t dictate your care.

How much does therapy cost in Michigan?

Cost (or investment) depends on many factors including copays, coinsurance and deductibles if you use insurance OR out of pocket fees set by individual therapists if you choose to go that route.

Your insurance plan has contracted providers that you can work with. But what if the therapist you see (or want to see) is out-of-network? Just because a therapist is not in-network with your plan doesn’t mean you can’t get a partial reimbursement for your sessions.

Do you have an HMO plan? HMO plans typically don’t offer out-of-network benefits.

Do you have a PPO plan or POS plan? Then you may have out-of-network benefits. What this means is that you would pay for services out of pocket, submit receipts to your insurance company, and when you meet your out-of-network deductible, your insurance would begin reimbursing you a percentage of payment.

Do you have a Flexible Spending Account or Health Savings Account (HSA)? If so, you can use your debit card to pay for therapy services. Because therapy is a healthcare expense.

So, you have options! Before you decide to use your health insurance to pay for therapy and counseling in Ann Arbor (as in contracted provider where you have a copay), here are a few helpful things to know so you can make an informed choice regarding using your health insurance:

Limited session length: If you choose to use your health insurance, your insurance company may limit the allowable session length to 45-minute sessions instead of 60-minute sessions or longer.

Limited number of sessions: In addition to session length limits, your insurance plans may limit the number of sessions you’re allowed in any given year. And once you reach that limit, they can stop paying for further sessions whether or not you continue to need them.

Pathologizing self-care and personal growth: In order to be reimbursed by your insurance, your therapist will have to give you a mental health diagnosis (e.g. adjustment disorder, depressive disorder, anxiety disorder, or alcohol use disorder) which becomes part of your medical record. And by the way, not everyone who presents to therapy has a mental health disorder or mental illness.

Loss of privacy: When you choose to use your health insurance, your insurance company becomes aware of your mental health status (mental health diagnosis, dates of service, and frequency of visits) and has the right to access your medical record for auditing or review purposes, which can have personal and private details of your life you might not want a stranger knowing about you. 

Is $100 expensive for therapy?

Depending on who you are and your financial situation and spending habits, you may think that $100 is a great deal OR a rip-off. We all relate to money in different ways emotionally. And we all have our own priorities when it comes to spending our hard-earned money.

Is therapy worth it financially?

Therapy is an investment in yourself, your health, your relationships, and your future. Your mental health and wellbeing are PRICELESS.

No matter how little or how much you pay for therapy, having a therapist who’s the right fit for you is priceless. I encourage clients to think of therapy as an investment instead of a cost.

Let’s say you attend 12 therapy sessions over the course of 3 months and notice dramatic changes in your mood, anxiety, and outlook on life. Imagine you achieved all your goals and transitioned out of care feeling like a million bucks! Armed with all these new coping skills and new perspective, growth doesn’t stop there! Any time you encounter the same kind of stressor that brought you to therapy in the first place (which you will, that’s life!), you can reach into your figurative tool box and pull out one of the skills you learned to better manage that stressor. Can you put a price tag on that? What price would you place on that?

So, what are the benefits of self-pay therapy? 

Control. Confidentiality. Choice. Value.

While copays for therapy sessions *typically* range from $20-$40 compared to rates of self-payment for therapy which can be much higher, the non-monetary benefits include control, confidentiality, and choice. 

Control over your care:

When you pay for therapy services on your own, you’re really in the driver’s seat of your own care. You get to set the frequency of visits (twice per week, weekly, or every other week), the number of visits in any given year (5, 10, 30, or more), and the session length (45-minutes, 60-minutes, or longer as needed).

Total confidentiality:

When your insurance company is not involved in your care, your therapist does not have to disclose anything about you to anyone and can’t do so without your written consent with a few exceptions (mostly when safety is compromised).

Choice:

There are awesome therapists out there who accept insurance! And there are awesome therapists out there who don’t! What if you found the right therapist for you, the issue you were seeking treatment for was their specialty, you read their website top to bottom and felt like they were talking directly to you, and during your initial phone consultation, you just felt like they got you. But, they don’t accept insurance at all, or just don’t participate with your insurance panel or plan. When you choose to self-pay for therapy services, you’re not limited by who accepts your insurance. 

Perceived value:

Have you ever heard of perceived value? This is the idea that when something is free, we attach less value to it, but when we have to pay for a product or service, we attach more value to it. Choosing to self-pay for therapy services is making an investment in yourself and a commitment to a better future for yourself. When we feel like we’re making a sacrifice in our budget, we’re more motivated for a positive outcome. 

Why are more therapists shifting to self-pay practices? 

A therapist paneled with insurance typically has to see more patients in any given week as compared to an out-of-network therapist because the reimbursement rates are low. And don’t keep up with inflation, meaning a therapist may have to see more clients to make ends meet. And an overworked therapist is not good for you, trust me.

Therapy is hard work… for the client *and* the therapist! You might think seeing 40 clients in a week is a full-time job just like any other 9-5, but holding space for others’ stories of pain, depression, debilitating anxiety, grief and loss, trauma, shame, and/or addiction takes a toll and this size case load is not healthy nor sustainable. 

Further, the administrative tasks that come along with owning an operating one’s own business can add several more hours to the work week. When was the last time you were on the phone with your insurance company? How long were you on hold? How many times were you transferred and rerouted through the phone tree? And in the end, was your problem solved? Hopefully! But the experience for providers is no different than for that of members. 

Typically, a therapist who sees no more than 25 clients per week models good self-care and work-life balance (this is not meant as a judgment or insult to anyone who is able to manage a larger caseload). And when not stretched too thin seeing 40+ clients in a week, your therapist can squeeze you in for an extra session as needed and has more time for a 15-minute check-in between sessions because you’re having a tough week. 

COnsidering THERAPY or Counseling IN ANN ARBOR?

Hi, I’m Nikki. A graduate of the University of Michigan School of Social Work and a Licensed Clinical Social Worker with 17+ years of experience. In my online therapy practice, I support adults through life’s tough transitions, traumas, losses, and other adversities. Contact me here for your FREE 15-minute consultation!