Many people delay starting psychotherapy because they do not understand how the cost of psychological treatment is covered by their health insurance. Health plan brochures often describe mental health benefits in a misleading or vague manner, leading to doubts about coverage. Managed care has added to this confusion because the same managed care plan may provide different coverage, and have different co-pays and deductibles, according to the contract negotiated with each employer. Understanding the factors involved in computing the cost of psychological services, and the terms used by insurance carriers, can help you determine what your insurance will pay toward treatment, and ultimately, help you to understand the cost of psychological treatment.

The cost of psychological treatment is based on several factors:

• Comparing psychotherapy appointments and medical appointments
• What insurance company is actually providing your mental health coverage?
• Is your plan a managed care plan or a point of service plan?
• What are some of the advantages and disadvantages of POS coverage?
• What are some of the advantages and disadvantages of using managed care?
• What are some of the common complaints about managed care?
• What percentage of the fee is covered by insurance?
• What is your deductible?
• What effect does a closed panel or closed network have on the quality of services?
• Do I have an out of network option on my managed care plan?
• How many treatment sessions will be needed (approximately)?
• Will your treatment require more sessions than will be covered by managed care?
• Will you need weekly sessions, more than once per week sessions, or can treatment be provided every other week?
• If your insurance does not cover all the necessary treatment, will the psychologist slide your fee, according to your income?
• What is the cost of not receiving treatment? What effect is the problem having on your personal health, your work, and your family?
• What can I do if I don't have insurance and can't afford the psychologist's fee?

Additionally, insurance coverage terms and plan provisions are also described:

Definitions of Health Insurance Coverage Terms

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