When considering the cost of therapy, one of the biggest follow-up questions is, “Will insurance cover it?” This question is highly individual and depends on the state you live in and your specific coverage. We will use the state of Michigan as an example, and we encourage you to research laws and insurance practices in your state to get the most accurate information.

In most cases, insurance covers behavioral health services, including online therapy. Behavioral health services, which include all types of psychotherapy, are regulated at the state level. In many states, including Michigan, telehealth parity laws require insurance providers to provide coverage regardless of service location. These laws typically apply to state-regulated insurance providers, including Aetna, Blue Cross Blue Shield (BCBS), and Priority Health.

These regulations mean that if your insurance covers behavioral health services, it will often cover online therapy and consider telehealth equivalent to in-person psychotherapy. Research shows that online therapy, particularly cognitive behavioral therapy, is as effective in promoting long-term mental health as traditional in-person therapy, and this has supported the push for laws that increase access to essential behavioral health services.

Michigan law requires that in order to receive telehealth services, the healthcare provider must be licensed by the State of Michigan to render the professional service.

Insurance Requirements for Online Therapy Coverage

One of the most significant considerations when considering whether your insurance will cover behavioral health services is whether your therapist is an in-network provider. Most therapy platforms are “in-network” with various insurance companies, meaning they accept insurance coverage from those companies, and coverage is negotiated between all network members. In-network providers cannot bill you for amounts beyond the negotiated rate, while out-of-network providers can.

What this means for you is that if your therapist is in-network with your insurance provider, you can get coverage for therapy, and the copay is often much less than for out-of-network providers. If your therapist is not in-network, they are considered out-of-network and can charge you full price for services. Therefore, it’s best to check with your therapist to ensure they are in-network with your insurance company, and you can also seek out in-network therapists to ensure you get the best coverage.

In terms of whether your insurance will cover online therapy, that depends largely on your state’s legislature regarding telehealth parity laws. Mental health parity laws consider online therapy as essential for mental health as in-person therapy and do not distinguish between the two formats.

For example, in Michigan, as of June 2024, telehealth parity laws require Medicaid and state-regulated insurers (such as BCBS) to offer the same coverage for online behavioral health services as in-person. This legislature means that individuals who have state-regulated insurance and quality for behavioral health services can receive the same coverage for online therapy. However, we recommend researching telehealth parity laws in your state to see how your insurance qualifies.

How to Check if Your Insurance Covers Online Therapy

When checking if your insurance covers online therapy, we recommend two steps: checking with your insurance provider to ensure they cover online therapy and checking with your behavioral health provider to ensure they are in-network with your insurance.

• Contact your insurance provider directly:
  • Call the member services number on your insurance card or visit the customer portal on your insurance provider’s website.
  • Ask specifically about coverage for online/virtual sessions.
  • Ask about copays, deductibles, and coverage limits.
• Check the therapy provider’s website.
  • Many online therapy services have tools to verify your insurance coverage.
  • Alternatively, ask them directly about whether they are in-network with your insurance provider.

Additionally, you can ask about Medicare or Medicaid coverage. Medicare now covers all online therapy services, and the copay after insurance is generally 20% of the Medicare-approved amount for your therapist’s services. Medicaid covers online therapy in most cases, but coverage depends on your state’s parity laws. For example, in Michigan, Medicaid considers online therapy as essential as in-person therapy and covers both formats in the same way.

Contact Start My Wellness to Get Started With Online Therapy

Understanding whether your insurance covers online therapy depends on several factors, including your state, the type of insurance you have, and whether your provider is in-network. Additionally, you can pay out-of-pocket for online therapy, but we encourage you to check if you’re eligible for in-network coverage before starting therapy so that you get the support you need at the cost you deserve.

At Start My Wellness, we are committed to making mental health care accessible and affordable. Our therapists are in-network with several major insurance providers in Michigan, including Blue Cross Blue Shield, Aetna, and Priority Health, to ensure you receive the coverage you deserve for in-person and online therapy. We will always let you know your eligibility and the cost of therapy before it starts and are happy to answer any questions you have about starting therapy.

If you’re ready to start your online therapy journey, contact us at (248)-514-4955 or meet our therapists and check out their in-network coverage. We’re here to help you take the next step in improving your mental health.

Sources

1. Start My Wellness: How Much Does Therapy Cost?
2. Michigan Health and Hospital Association: Governor Signs Telehealth Parity & Behavioral Health Licensing Clarification Bills
3. Start My Wellness: New Year, New Insurance
4. Medicare: Telehealth