The Benefits of Private Pay in Mental Healthcare
When you opt to not use your insurance for mental health benefits and pay privately, your information is confidential and protected, without the need to be reported to and owned by your insurance company.
When you choose to use your insurance for mental health services, please be aware of the following:
(1) Your mental health information is placed at risk.
Insurance companies can stockpile client confidential information, catalog it, and use it in potentially harmful ways (such as to direct future healthcare decisions and limit care).
If I were part of an insurance panel and accepted your insurance to pay for your sessions, then I would have to give the insurance the following information:
a psychiatric diagnosis for your case (this is required in order for insurance to cover treatment)
the planned course of treatment
updates on your progress during treatment
updates on how you are doing in various areas of your life (at work, with your family, daily living activities)
This information would then become part of your insurance company's records and parts of it may become part of your permanent medical record at the Medical Information Bureau--which is a national data bank closed to the public.
This information then becomes available to be examined as part of your future applications for life insurance, employment, credit loan, security clearances, etc.
(2) You lose control over some of the therapy process.
Throughout treatment, insurance companies might request additional information prior to authorizing suggested treatment. These approvals may take time and interrupt the course of treatment. With private pay, you can decide how often your sessions are, how long you continue in treatment, and when you're finished with treatment.