Health insurance can be a boon to those fortunate enough to have it. If you have generous coverage, that’s better still. Even so, using insurance to pay for psychotherapy can put limits on privacy and on a therapist’s ability to take an individualized therapeutic approach. What’s more, as copays and deductibles rise, the out-of-pocket costs of private-pay could wind up being about the same as—or even less than—using insurance for psychotherapy.
The “Deal” with Insurance
Insurers set conditions before they will reimburse for services. These conditions limit your privacy and can influence the qualities and duration of your treatment. When you use health insurance for therapy, that company—usually one contracted by your employer—becomes party to your treatment.
Maximum Privacy
As suggested by its name, one advantage of private-pay is that it is private.
Before an insurer will pay for therapy, it requires your therapist to disclose your diagnosis. For some, the thought of being labeled with a “mental disorder” might pose a speed-bump to seeking help. If you are in a high-profile, highly sensitive profession (such as aviation, law enforcement, media, etc.), having that “disorder” reported to a bureaucracy connected to your employer might turn that speed bump into a roadblock.
An even bigger erosion of privacy occurs when insurers sometimes require therapists to turnover patients’ case notes. After reviewing your case, insurers may specify certain therapeutic approaches. They may reduce session frequency. Or, they may stop reimbursing altogether.
Minimum Interference
Not having to report a diagnosis is one way private-pay eliminates the potential for health insurance companies to influence your treatment.
A potential side effect of requiring a diagnosis, for example, is that it can push therapists to rush to judgement and come up with something before they fully understand you. Diagnoses also can sway the direction of your treatment by giving insurers a lever for setting time-limits, influencing treatment plans, and pushing manualized therapy.
Insurer influence, in fact, is one factor behind the increasing use of treatment manuals. Insurers tend to favor the way manualized treatment generalizes individual experience, That makes it simpler to gauge effects that, in actual practice, can be subtle, incremental, ephemeral, and, sometimes, known only to you. Compared to understanding the complexities of your life. it’s far simpler to confirm that a therapist is adhering to the manual’s sequence and number of steps.
Maximum Individualization
Untethered to a manual, a therapist can focus on providing individualized treatment. For patients not easily categorized—or whose concerns might be ill-addressed by following delineated steps—that’s important.
Just as unique life experience got you here, it is a unique path that will take you forward. Individualized treatment lets you progress free from the “expected outcomes” demarcated by manuals and un-pigeon-holed by the “quantifiable goals” monitored by insurers. You want to achieve your goals, too, of course. But insurers track goals to decide when to terminate coverage. Private pay lets you decide when you’re ready to end treatment.
Maximizing Value
Is private-pay instead of insurance worth it?
Decide how badly you’d want your diagnosis kept private. Then, consider the role a corporate bureaucracy might play in your treatment. Finally, weigh those concerns against the actual value of your health insurance plan.
For those with very good health insurance, the potential limitations to privacy and to individualization may make financial sense. But, depending on your deductible and copay, private-pay even make better financial sense.
To weigh the value of private-pay versus using your insurance, consider your plan. Based on Dynamic Therapy LLC’s psychotherapy fees and sliding scale, determine how many sessions it would take before you met your annual deductible. Then factor in your copay for each session once you’ve met that deductible. Compare actual out-of-pocket costs, and you may find that—even before you factor in the treatment impacts of using insurance—private-pay offers a better value.