Why you Might Choose to Not Use your Health Insurance for Mental Health Services

Of course the obvious reasons people want to use their health insurance for mental health counseling is because it is a benefit that you have and you may have spent money to purchase that benefit.

However, there are considerations to think about when seeking out mental health counseling and using your health insurance.

Providers are required to “diagnose” you in order to bill your health insurance. As with any health provider, some may misdiagnose, or over diagnose, and these diagnoses will be on your permanent health record with the insurer.

Confidentiality cannot be guaranteed because in order to bill your insurance, your PII, Personally Identifiable Information, and your diagnoses, are sent from your mental health provider to a third party. This is mostly done over electronic means.

Having certain diagnoses can be problematic for later reasons, such as obtaining certain jobs and passing security clearances.

Insurance does not provide coverage for several types of counseling, such as couples counseling, grief counseling, career counseling, etc. People often come to counseling for help with stressors in their life, that don’t lend themselves to a diagnosis. Again, some providers may assign a diagnosis to you that is not quite correct in order to bill your insurance. And, again, this will go on your permanent health record.

Insurance companies usually have a limit on the number of sessions you are allowed.

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