Navigating the Insurance Maze

The Therapist’s Complete Guide to Working with Insurance – And Whether You Should

with Barbara Griswold, LMFT

Barbara Griswold, LMFT

Navigating the Insurance Maze

The Therapist’s Complete Guide to Working with Insurance – And Whether You Should

with Barbara Griswold, LMFT

Test Yourself: Laws When Your Client is Out of State Plus: Interstate Compacts 

 

So, your client is in another state. Here’s a quick quiz to see if you know the legalities:

True or False?

  1. You must be licensed (or permitted) to practice in the state where the client is located at the time of the session 
  2. It doesn’t matter where the client’s residence is
  3. With couples or families, each client must be in a state where you are licensed or permitted to practice
  4. It doesn’t matter if the client is paying privately or using insurance
  5. Some insurance plans like Medicare require you to be fully licensed in that other state

How did you do?

If you said all of these are true, great job, you’re right! In fact, it may be considered unlawful practice if you see someone in a state where you are not licensed or permitted, and your malpractice typically won’t cover you. And yes, I know all your friends are doing it, but it can be a dangerous practice, one that courts have already begun to enforce.

So, If you are not licensed in the other state, check with your licensing board in that other state to determine their rules.

To find the licensing board in another state, click the links below, compiled by the Telehealth Certification Institute:

I know, it is annoying. But what is being done to fix this mess? 

That’s a big question, so some licensing types are putting together interstate compacts, which is one solution to allowing therapists to practice across state lines.  Find out more at the following links:

  • Psychologists: https://psypact.org.
  • Social Workers:t https://swcompact.org.
  • Counselors: Find out more at (https://counselingcompact.org).
  • MFTs: Don’t look for a MFT compact anytime soon – if ever. Many states historically have looked unfavorably on compacts, including California and New York, which have a substantial number of MFTs. Compacts can be expensive for the states involved. So instead, the American Association of Marriage and Family Therapists (AAMFT) is going a different route: Advocating for license portability model laws to be introduced in states across the nation. Unlike compacts, license portability would mean that the state would issue a MFT license to any MFT who is licensed in another state. This would bypass an obstacle currently faced by therapists, where state-specific coursework, exam, or experience requirements may make it difficult to become licensed in another state. AAMFT has introduced legislation in several states. Find out more at the following links:
    • AAMFT License Portability Overview: click here
    • AAMFT’s “Access MFT” website re: licensure portability: click here
    • AAMFT Legislative Updates: click here