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Medical Billing Guidelines for Behavioral Health Services

Medical billing for Behavioral Health Services comes with challenges from navigating CPT and HCPCS codes to understanding payer policies and documentation rules. Whether you’re a therapist, psychiatrist, or billing specialist, knowing how to bill for behavioral health properly can make the difference between a paid claim and a costly denial.

In this blog, we’ll break down the essentials of billing behavioral health services, so you can stay compliant, get reimbursed faster, and support patients without interruptions.

What Are Behavioral Health Services?

Behavioral Health Services refer to a wide range of treatments and support systems addressing mental health conditions, substance use disorders, emotional well-being, and behavior-related issues. Common services include:

  • Individual and group therapy
  • Psychiatric diagnostic evaluations
  • Medication management
  • Crisis intervention
  • Substance abuse counseling
  • Tele-behavioral health sessions

Main Medical Billing Guidelines for Behavioral Health Services

1. Use the Right CPT and HCPCS Codes

Accurate coding is the foundation of successful behavioral health billing. Common CPT codes include:

  • 90791 – Psychiatric diagnostic assessment (no medical services)
  • 90792 – Psychiatric diagnostic assessment with medical services
  • 90832, 90834, 90837 – Psychotherapy sessions (30, 45, 60 minutes)
  • 90846, 90847 – Family management/treatment (without/with the patient present)
  • H0031, H2019 – HCPCS codes used for Medicaid behavioral /mental health services

Always check payer-specific policies for code limitations or coverage restrictions.

2. Use Time-Based Billing Correctly

Behavioral health sessions are often time-based. Be sure to document the exact start and end times of therapy or counseling to support billing. For example:

  • A 45-minute individual therapy session is billed under 90834
  • A 60-minute session falls under 90837

If you’re ever in doubt, refer to the CPT code descriptor or payer guidelines for minimum time requirements.

3. Verify Insurance Benefits before the First Visit

Not all plans cover behavioral health in the same way. Before rendering services:

  • Check behavioral health coverage separately from physical health benefits
  • Allow the number of allowed sessions per year
  • Determine if pre-authorization is needed
  • Ask if services are subject to co-pays or deductibles

Verifying upfront avoids denials and surprise bills for patients.

4. Stay Compliant With Documentation Standards

Payers require clear clinical documentation to justify the medical necessity of behavioral health services. Include:

  • Reason for the visit (ICD-10 diagnosis)
  • Treatment plan goals
  • Interventions used
  • Progress notes
  • Time spent on service

Without this, even a perfectly coded claim may be denied.

5. Know the Rules for Telehealth Behavioral Health Services

Telehealth has become a major part of behavioral health, especially post-pandemic. When billing tele-behavioral health:

  • Use the proper place of service (POS) code, like POS 02 or 10
  • Add modifier 95 or GT if required by the payer
  • Ensure the platform used meets HIPAA requirements
  • Document that the appointment was conducted via telehealth

Also, check if your state requires audio-visual connections or allows telephone-only sessions.

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6. Handle Medicaid and Medicare Behavioral Health Billing Carefully

Behavioral health billing under Medicaid or Medicare often comes with state-specific or program-specific codes and rules. For example:

  • Medicaid often requires HCPCS codes (e.g., H2019) rather than standard CPT codes
  • Medicare has unique policies on incident-to billing and provider eligibility

Always consult your state Medicaid manual or CMS guidelines.

Common Behavioral Health Billing Mistakes to Avoid

  • Using incorrect time-based CPT codes
  • Wishing to verify mental health benefits independently
  • Missing or inaccurate diagnosis codes (ICD-10)
  • Incomplete documentation of medical necessity
  • Forgetting required modifiers for telehealth

Avoiding these errors reduces denials and ensures timely payment

Final Thoughts

Billing for Behavioral Health Services is more than just submitting claims—it’s about ensuring that mental health professionals get paid for the critical care they provide. By staying up to date with billing codes, documentation requirements, and payer policies, your practice can thrive and focus more on what truly matters: helping patients heal.

Need Help With Behavioral Health Billing?

At Cures Billing Services, we specialize in behavioral health medical billing. From code accuracy to claims follow-up, we handle it all so you can focus on patient care.

Explore our Medical Billing Services today!

Frequently Asked Questions (FAQs)

Behavioral health services include therapy, psychiatric evaluations, substance abuse treatment, and mental health counseling. These services are billed using specific CPT or HCPCS codes based on session length and provider type.

Common CPT codes include 90791 for psychiatric evaluation, 90834 for 45-minute therapy, and 90847 for family therapy. Always confirm with payers for coverage details and required modifiers.

Telehealth behavioral health services can be billed using modifiers like 95 or GT and require accurate POS codes (e.g., POS 02 or 10). Ensure your sessions comply with HIPAA and payer-specific rules.

Yes, many insurance plans require prior authorization before starting therapy or psychiatric care. Always verify benefits and coverage before the patient’s first visit.

Medicaid and Medicare have unique behavioral health billing rules. Medicaid may require HCPCS codes like H2019, while Medicare limits billing based on provider type and service eligibility.

You must document the diagnosis, session time, treatment goals, and progress notes for every visit. Lacking records can lead to denied claims or audits.

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