Self-pay involves the client paying for therapy sessions directly without involving insurance providers. Self-pay ensures increased confidentiality since sharing your information with insurance companies is unnecessary. Second, it allows for greater flexibility in treatment plans, as therapists can tailor sessions to your specific needs without adhering to insurance guidelines or requiring a diagnosis. Finally, private pay enables you to choose a therapist without the restrictions imposed by insurance networks.

The most significant possible disadvantage to self-pay is the out-of-pocket cost, which may be higher than what you’d pay through insurance.

Insurance pay involves using your health insurance plan to cover some of the costs of therapy. Reducing out-of-pocket costs is the main reason people choose to use insurance. When a client is already diagnosed with a condition and is looking to continue to receive mental health services that qualify for coverage, this is a good plan.

Insurance providers often require a formal diagnosis to authorize coverage and may limit the number of sessions or dictate treatment plans. Some clients do not believe a diagnosis would be helpful or would prefer that insurance not know about them going to therapy. Also, some clients would prefer the therapist and client dictate the number of sessions and treatment plan. In these cases, insurance pay may not be the best choice as some clients feel this affects the quality of therapy.