MENTAL HEALTH BILLING SERVICES

At MedStates, we provide specialized mental health billing services for psychiatrists, psychologists, therapists, and behavioral health providers across the U.S. Our expert billing team understands the unique complexities of psychiatric and therapy billing, from CPT codes and telehealth modifiers to session-based claims and compliance. Whether you are a solo mental health provider or part of a multi providers behavioral health clinic, we manage your billing process, reduce denials, and improve cash flow. Discover why MedStates is the trusted mental health billing company helping practices maximize reimbursements while staying fully compliant with state specific industry regulations.

BEHAVIORAL AND MENTAL HEALTH BILLING SERVICES

“Focus on patient care while we take care of your mental health practice financial health”

Mental Health Billing Services

With the continuous improvements in healthcare billing industry, the providers for mental healthcare face different challenges while billing for their services. Therefore, it has become essential for healthcare providers to keep their billing process updated with latest guidelines.

The certified medical credentialing services, accurate use of medical codes and timely redressal of denied claims is of immense importance for streamlining billing process and increased reimbursement of financial claims. With so many options available, it has become difficult for healthcare providers to choose whether they should hire inhouse mental health billing team, choose a hybrid model, or make their life easy with outsourcing their medical billing operations. 

Since there are different opinions regarding hiring inhouse billing staff or choose a hybrid model for billing services, but, outsourced medical billing services has evolved as the best alternate for bringing efficiency without the need for additional administrative and financial burden on mental health practice. 

By outsourcing mental health billing services, healthcare providers do not have to worry about hiring inhouse staff for medical credentialing, medical coding, denials management and accounts receivable. Such hiring put continuous financial as well as increase administrative burden on medical practices providing behavioral healthcare services. 

Contrary to this, when healthcare providers choose to outsource their medical billing operations they just have to pay a percentage of their practice reimbursement against all the services that they require. Likewise, our medical billing company offer immense benefits to healthcare providers. 

Moreover, with outsourced medical billing services, mental health service providers are assisted to make informed decisions for operational and financial efficiency of their mental health practice. Whether its a private practice or a group practice, healthcare providers are provided a brief on mental health billing services, billing techniques to advanced use of technology for increasing revenue.

 

mental health billing services

At MedStates, we specialize in mental health billing services designed specifically for providers in psychiatry, psychology, therapy, and behavioral health. Whether you are an independent therapist, a psychiatric clinic, or a multi-specialty behavioral health center, our team ensures timely claims, maximum reimbursements, and full compliance with insurance and regulatory standards.

We understand the complexities of mental health billing, including session-based CPT coding, time-based billing, modifiers in mental health billing, and strict documentation requirements. That is why our dedicated billing experts offer personalized solutions that go beyond basic medical billing.

Grab a hold of your revenue cycle today with MedStates mental health billing services designed to cater your requirements.

For Insurance Credentialing, Medical Billing Services and other services

HIPAA Compliant
45% Monthly Savings
97% First Pass Rate
40% Increased Reimursements
100% Compliance
Tailored Solutions

How Mental Health Billing Differs from General Medical Billing

Mental health billing is uniquely challenging. Unlike standard medical billing, it often involves:

Key Billing ComponentHow Mental Health Billing Is Different
Time-based CPT codesRequires correct use of codes like CPT code 90832, 90834, 90837 based on session length
Multiple service codes per patientMental health providers may bill for evaluations, therapy, and add-ons in a single visit
Telehealth modifiersModifiers like 95 or GT are essential for correct reimbursement for virtual sessions
Pre-authorizationFrequent prior auth requirements vary widely by payer and diagnosis
Session limitsMany payers restrict the number of sessions per plan or diagnosis code
Specialized documentationNotes must justify therapy type, goals, duration, and medical necessity

Many billing companies treat mental health as an afterthought. We specialize in it — ensuring every claim is accurate, complete, and optimized for approval.

OUR SERVICES FOR MENTAL HEALTH PROVIDERS

Practice Audit and Analysis

Our complimentary initial practice analysis identify areas for improvement, optimization of workflow and improving service quality to mental health patients.

Medical Coding

AAPC certified medical coders at MedStates provide specialized mental health coding services with appropriate use of modifiers to ensure accuracy for maximized reimbursements of claims

A/R Management

Our proactive A/R approach keeps you updated about your outstanding cash inflow to address collection within stipulated time for maintaining healthy cashflow of your mental health practice

Analytics and Reporting

Our dashboard provides you with the real time insight of your practice financial health to assit you make data-driven decisions while tracking key performance indicators (KPIs)

Faster Credentialing

Our healthcare credentialing services for mental health providers ensure that providers are enrolled with insurance networks to avoid claim denials.

Medical Billing

MedStates offer mental health billing services to mental health providers in line with industry regulations and guidelines for timely processing of claims, minimizing denials and accurate cashflow

Patient Help Desk

Our virtual assistants remain available to address patient queries including insurance issues and payment concerns, for better patient experience and excellent customer service

Book Keeping

MedStates book keeping services use advanced tools like QuickBooks to maintain accuracy in mental health practice’s finance and provide insight about financial health of your practice

Pre-authorization

Prior verification of insurance benefits is carried out to confirm whether patients insurance cover the cost of treatment and to avoid denied claims

Claims Management

End-to-end claims management continues to track and record denial patterns, implement corrective actions for sustainable and improved financial management

Practice Management

MedStates mental health billing services offer tailored practice management solutions for behavioral health practice to streamline practice operations, improve efficiency and patient care.

Financial Management

Our financial management solutions are designed to keep your practice profitability sustained with real time analytics and detailed reporting to make informed decisions

Who We Serve: Mental Health Providers Supported by MedStates

At MedStates, we proudly support a wide range of mental and behavioral health professionals. Each specialty faces its own billing challenges — and our customized approach ensures you get paid accurately and on time, regardless of your discipline or practice size.

Psychiatrists and Psychiatric Mental Health Nurse Practitioners (PMHNPs)

We handle complex psychiatric billing, including E/M codes, medication management, psychotherapy add-ons, and integrated care coordination — all while ensuring compliance with payer-specific documentation rules.

Licensed Clinical Social Workers (LCSWs)

Our team understands the session limits, therapy codes, and behavioral health parity laws that impact LCSW billing — especially when working under supervision or across state lines.

Clinical Psychologists & Neuropsychologists

From psychological testing (CPT Code 96130 to CPT 96133) to extended therapy sessions, we help psychologists bill accurately for diagnostic assessments, therapy, and cognitive evaluations.

Licensed Professional Counselors (LPCs)

We support LPCs with accurate use of psychotherapy CPT codes, group sessions, and state-by-state coverage guidelines for private and Medicaid insurers.

Marriage & Family Therapists (MFTs)

We optimize billing for MFTs by ensuring proper use of CPT codes for couples/family therapy, non-covered services, and modifiers required for supervised care.

Behavioral Health & Substance Abuse Clinics

We offer complete revenue cycle solutions for outpatient mental health and addiction recovery clinics, including multi-provider coordination, prior auth, and bundled care plans.

Telehealth Mental Health Providers

We help virtual therapy practices maximize reimbursement with correct telehealth modifiers (95, GT), place-of-service codes, and state-specific parity law compliance.

No matter your specialty, we tailor our billing workflows to your documentation style, insurance panel, and treatment approach. Whether you’re just starting out or managing a multi-state group, MedStates provides the structure, support, and compliance you need to scale your practice.

MENTAL HEALTH BILLING SERVICES FOR BEHAVIORAL HEALTH SPECIALTY

Our AAPC certified medical coders specialize in medical coding and medical billing of mental health problems

Stress medical billing

Depression billing services

Bipolar billing services

Dementia medical billing

Paranoia billing services

Anger medical billing

Psychosis billing services

Panic Attacks billing services

Personality disorder billing

PTSD medical billing services

Schizophrenia medical billing

Trauma medical billing

Sucidal Thoughts

Therapy medical billing

Mindfulness medical billing

Nationwide Mental Health Billing Services — With Local Expertise

At MedStates, we proudly serve mental health providers across all U.S. states, offering end-to-end billing services customized to your location, specialty, and payer mix. Whether you are a solo therapist in a small town or a psychiatric group in a major metro, our team ensures your claims align with federal and state-level regulations.

We Understand State-Specific Requirements

While our services are nationwide, we bring local expertise to states with complex Medicaid rules, licensing differences, or payer requirements. For example:

We also support mental health providers in high-growth states like Texas, California, and Illinois, adapting to local payer contracts, Medicaid nuances, and mental health parity laws. Explore our medical billing services for mental health providers in California.

No matter where you are located, MedStates is your reliable partner for compliant, efficient, and profitable mental health billing services nationwide.

Common Challenges in Behavioral Health Billing — and How We Solve Them

Mental health billing is fraught with hurdles. Here is how MedStates helps overcome them:

ChallengeOur Solution
Frequent claim denials due to incorrect modifiersExpert-level CPT + modifier mapping
Time-based code rejectionsAccurate time tracking and documentation validation
Insurance limitations on sessionsAuthorization tracking and coverage review
Telehealth billing confusionClean claims using payer-specific telehealth rules
Delayed reimbursementsAggressive follow-up and automated alerts

Our team is proactive — not reactive — so you can focus on delivering care.

Mental Health Billing Codes Explained: CPT, ICD-10, HCPCS, Modifiers & POS

Accurate coding is at the heart of successful mental health billing. Here’s a breakdown of the most commonly used code sets and how they apply to behavioral health billing:

CPT Codes for Mental Health Billing

CPT (Current Procedural Terminology) codes are used to report mental health services. These are often time-based and vary by type of session.

CPT CodeDescription
90791Psychiatric diagnostic evaluation (without medical services)
90792Psychiatric diagnostic evaluation with medical services
90832Psychotherapy, 30 minutes with patient
90834Psychotherapy, 45 minutes with patient
90837Psychotherapy, 60 minutes with patient
90846Family psychotherapy (without the patient present)
90847Family psychotherapy (with the patient present)
90853Group psychotherapy
96130–96133Psychological testing and evaluation services
99354–99355Prolonged services (used as add-ons to therapy sessions)

ICD-10 Codes Commonly Used in Behavioral Health

ICD-10 codes describe the diagnoses being treated. Accurate diagnosis coding is critical for payer acceptance and treatment justification.

ICD-10 CodeDescription
F32.0–F32.9Major depressive disorder, single episode
F33.0–F33.9Major depressive disorder, recurrent
F41.1Generalized anxiety disorder
F90.0ADHD, predominantly inattentive type
F43.10Post-traumatic stress disorder (PTSD)
F31.9Bipolar disorder, unspecified
F84.0Autistic disorder
Z63.5Disruption of family by separation or divorce
F20.9Schizophrenia, unspecified

HCPCS Codes for Behavioral Health

HCPCS (Level II) codes are often used for non-physician services or telehealth.

HCPCS Code Description
H0031Mental health assessment, by non-physician
H0032Mental health service plan development
H2019Therapeutic behavioral services, per 15 minutes
H0001Alcohol and/or drug assessment
G2012Virtual check-in (brief communication tech-based service)
G2212Prolonged office visit (replaces 99354/99355 for E/M codes)

Modifiers Used in Mental Health Billing

Modifiers add detail to the claim, indicating service nuances like telehealth delivery, distinct procedural services, or supervised services.

ModifierPurpose
95Synchronous telemedicine via real-time audio/video
GTTelehealth via interactive audio/video (Medicaid-specific in some states)
25Separate E/M service on same day as another procedure
59Distinct procedural service
HOMaster’s level clinician
HEMental health program
HNBachelor’s level provider

Read more details on modifiers in mental health billing across the U.S. with state-specific insurance formalities

Place of Service (POS) Codes in Mental Health Billing

POS codes identify the location where services are rendered. These influence reimbursement rates, especially for telehealth.

POS CodeLocation
11Office (in-person outpatient visits)
02Telehealth (legacy code)
10Telehealth provided in patient’s home
03School
21Inpatient hospital
22Outpatient hospital
99Other (e.g., community center, mobile clinic)

See how POS codes are applied in mental health billing

Why Accurate Coding Matters in Mental Health Billing

Incorrect or mismatched codes are a leading cause of claim denials. At MedStates, we ensure that every CPT, ICD-10, HCPCS, modifier, and POS code is correctly aligned — helping you avoid underpayments, rejections, and compliance issues.

Your trusted Partner in Behavioral and Mental Health Billing Services

At MedStates, we specialize in mental health billing services tailored to therapists, psychiatrists, and behavioral health practices. While big billing companies use generic systems, we deliver therapy billing solutions designed to maximize revenue and minimize stress. Here’s why behavioral health providers trust our psychiatry billing services over impersonal corporations:

100% U.S.-Based Experts in Psychiatric and Behavioral Health Billing

Our experienced, U.S.-based team understands payer rules, behavioral CPT codes, and documentation nuances for mental health specialties.

Mental Health Billing Specialists (Not Generalists)

Larger companies often mishandle mental health claims—we guarantee accuracy. We focus exclusively on therapy practice billing, with deep expertise in:

  • Telehealth billing compliance for mental health
  • Insurance claim submission for Medicaid, Medicare, and commercial payers
  • Denial prevention through precise documentation

In-Depth Knowledge of CPT Codes, Time-Based Billing, and Payer-Specific Guidelines

From behavioral health billing codes CPT-90837 to CPT-99214, we ensure proper use of time-based codes, combinations, and payer-specific billing requirements.

15-30% Higher Collections for Mental Health Practices

Big providers rely on automation that misses underpayments. We:

  • Audit every mental health insurance claim for errors
  • Fight denials with insurer-specific behavioral health billing rules
  • Recover an average of $18,000/year in underpaid claims for clients

Dedicated Support for Therapy Practices

No call centers. Every client gets:

  • A mental health billing expert who knows your practice
  • Same-day responses to billing questions
  • Monthly reports showing practice revenue growth

Transparent Pricing for Behavioral Health

Unlike big companies with hidden fees, we offer:

  • Percentage-based billing services (only pay when we collect)
  • No long-term contracts required
  • Free onboarding for therapy practices

EHR Integration for Mental Health Providers

Seamless sync with TheraNest, SimplePractice, TherapyNotes, and other therapy practice management systems.

 
Practice Analysis
 
 
 Furnish your Requirements
 
 Documentation
 
 
 Peace of Mind 
 
 
 Service Reviews
 

FAQS: MENTAL HEALTH BILLING SERVICES

How much do mental health billing services cost?

We charge 3-5% of collected reimbursements with no hidden fees. Unlike flat-rate services (which can overcharge small practices) or large companies with setup fees, you only pay when we get you paid.

What’s included in your mental health billing services?

Our end-to-end service covers insurance claim submission and tracking, denial management and appeals (with an average denial rate under 5%), patient billing and payment posting, monthly revenue reports tailored for therapists, and free EHR integration with systems like SimplePractice and TherapyNotes.

Do you handle credentialing for new mental health providers?

Yes. We manage full insurance paneling including Medicare, Medicaid, and commercial payers. Our credentialing service includes CAQH setup and updates, application submissions, and persistent follow-ups until you're fully approved.

How do you handle denied claims for therapy sessions?

We use a 3-step denial recovery system. First, instant claim scrubbing catches errors before submission. Second, we file payer-specific appeals using our knowledge of each insurer's mental health rules. Third, we conduct underpayment audits that typically recover 15-30% more revenue for our clients.

Can you bill for both in-person and telehealth therapy sessions?

Absolutely. We ensure compliance with all telehealth requirements including proper use of modifiers (95, GT, POS 02), state-specific billing rules, and individual payer policies for virtual therapy sessions

What’s your turnaround time for submitting claims?

We file claims within 24 hours of session documentation. This fast submission process leads to shorter reimbursement cycles (typically 14-21 days) and helps avoid timely filing denials.

How do you protect patient data in billing?

We maintain strict HIPAA compliance through encrypted EHR integrations, secure patient payment portals, and SOC 2-certified servers for all data storage and transmission.

Why choose a mental health-specific billing company?

Generic billers often miss critical therapy-specific details like code differences (90837 vs. 90834), mental health documentation requirements, and payer nuances for behavioral health. Our specialists work exclusively with therapists, which reduces billing errors by 40%.

How long does switching to MedStates take?

Most practices complete the transition in 7-10 days. We handle all aspects including data extraction from your current system, insurance contract validation, and optional staff training.

Do you offer a free trial or billing audit?

Yes. We provide a no-cost practice analysis that includes a claim denial review, underpayment recovery estimate, and custom savings report. Contact us today to schedule your free audit.