Being in private practice means you get to decide what type of business you want to run. Many therapists have found it extremely beneficial to accept insurance into their practice. Accepting insurance usually means you will get busier faster and referrals will continue to flow into your business with little to no marketing. On the flipside, there are lower reimbursement rates (in some cases compared to cash paying clients), more paperwork and billing that goes along with accepting insurance.
Whether you accept insurance or not, it is up to you. Once you’ve made the decision to accept insurance at your practice, there are steps you will need to take in order to successfully accept insurance. Outlined here are five steps you need to take to be able to accept insurance and get reimbursed by them.
1. Gather all your paperwork and information
You will need a copy of your license, malpractice insurance and transcripts. Different insurance companies require different information so you want to make sure you are prepared. I recommended you keep a folder with all of this information in it with copies of everything for issue finding.
2. Register with CAQH
CAQH is an amazing non-profit that reduces the amount of paperwork you have to submit to each insurance panel. This is an essential and key step to getting on insurance panels. Registering with CAQH can be time consuming but it will absolutely be worth it in the end. Not all insurance panels use CAQH but the major ones do so be sure to keep on top of this step.
3. Identify which panels you want to join
Not all insurance panels are designed the same so you may need to do some research about which ones to apply for. Start with people who are geographically close to you and ask them about what insurance panels they are on. It might be difficult to find out reimbursement rates; however you can find out about paperwork requirements, etc that will help guide your decision.
4. Join the panels
Once you have identified which panels you want to join, it’s time to set a couple of hours aside to complete their applications. I suggest you do this where you have access to a printer, internet, copier and all of your paperwork. Some applications are hand-written. Some applications will require you to fax or scan in documents. Each insurance panel will have a website with information on how to join their network. You can always call “provider relations” and have them guide you through the process.
5. Do your research while you wait
You will need to understand basic CPT codes and billing. You can consider hiring a biller who will manage the authorizations and billing for you. Many Electronic Health Records incorporate a billing function into their software. Simple Practice has a billing function available to those who use their practice management system. The more you can learn about insurance, the better equipped you will be at taking it. Do you know the meaning of deductibles, co-pays, co-insurances and HSA’s? These are a few examples of terms you will need to know in order to take insurance.
You can make a living from accepting insurance. One way I have found to be most helpful is to take a combination of in-network insurances, private pay clients and out of network policies. There are tons of horror stories out there about insurance companies not paying or claims being denied but there are also a ton of stories out there by therapists who have full time private practices with the help of insurance clients.
Amanda Patterson, LMHC, CAP , Mental Health Counselor of the Year by the Florida Mental Health Counseling Association, decided to become a therapist while attending Nova Southeastern University. She saw the need to help people achieve the life they wanted to live, while creating a life of her own. She completed her master’s in Mental Health Counseling and started a career in the juvenile justice arena. Amanda has been a therapist for ten years and has a private practice in Wellington, Florida, specializing in depression, anxiety, relationship issues, and substance abuse in teenagers and young adults. Amanda is a believer in holistic treatment and she practices veganism, meditation and yoga in her life. Find out more about her practice here.
To schedule an appointment, call or text Amanda at 561-223-1066 or email her at amanda@amandapattersonlmhc.com.
