How to budget for therapy: Ways to make the investment possible…and worth it
These are times of unprecedented economic hardships and people are struggling to pay rent, afford groceries, and are experiencing mental health struggles that may feel new or exacerbated because of these hardships. Have you contemplated seeking professional help to learn the tools to cope with and manage these difficult times? In answering that question in your mind, what reasons did you notice coming up for not seeking therapy? I imagine many considered the weight of their financial situation and asked themselves if their insurance would cover it. If so, you are not alone! All the reasons you gave for not seeking therapy are valid --- and with a gentle nudge, I also say that our mental health is one of the most important investments we can make right now --- especially considering world events.
With the start of a new year, people are required to re-evaluate their health insurance coverage and determine what plan will appropriately fit their needs, and what deductible and copay they can afford. The caveat is that many people will focus on choosing a health insurance plan that prioritizes their physical health needs and concerns and choose to put their mental health needs last. This may be due to the limited amount of knowledge there is about how mental health coverage works, as well as the stigma that coincides with seeking mental health services ---an important discussion to have, of course, but the focus of this topic is to highlight the importance of investing in our mental health!
Choosing an insurance plan can often feel overwhelming, confusing, and stressful. It is difficult for many individuals to decide to seek therapy without also having to worry about how to pay for it. With the cost of monthly payments, copays, and meeting a deductible (out-of-pocket costs), many people struggle to budget in mental health services along with their physical health care, especially when the past few years have led to financial sacrifices for many individuals and families. However, there are strategies to help invest in seeking out or continuing therapy. For example, you can write down last month’s spending costs and re-evaluate what can be eliminated in the coming months. Some other ideas are:
Set and evaluate financial goals
Create a budget for the next month in advance; take advantage of free budget templates and apps.
Sell things you no longer need or want (decluttering is good for the mind, body and soul!)
Practice the 50-30-20 budget plan created by Elizabeth Warren in her book “All Your Worth: The Ultimate Lifetime Money Plan” (50% to needs, 30% to wants, and 20% to savings)
Cancel those subscriptions you don’t use
Practice self-compassion, positive affirmations, and financial affirmations! Recognize and challenge limiting beliefs about your ability to sustain financial balance and invest in yourself.
Deductibles, insurance, and advocating for your needs
The money you save from eliminating other costs can help meet your deductible more quickly and, in return, you will have your sessions covered for a longer period of time in the year. Below is an example of cost if your copay is $40.00 per visit.
You may be asking, “What if my deductible is $6,000 and not $600?” Many people choose an insurance plan that has a lower premium (monthly payment) and end up with a higher deductible versus paying a slightly higher premium with a lower deductible. If this is the case, ask yourself what kind of coverage you may anticipate needing throughout the year and reevaluate if the plan you have currently is the best fit for you for 2023. If you do choose to stay with a higher deductible because you do not anticipate substantial care throughout the year, consider talking to your provider about the best plan to support mental health services. Advocate for yourself! You are worthy of investing in your mental health!
Many individuals do not seek therapy because they simply cannot afford it. An important part of advocating for yourself is staying informed on how to receive the care you need within your means. If you choose to stick with a high deductible plan so you have a lower monthly payment, consider advocating for yourself by inquiring about sliding scale options. Sliding scales may vary depending on the selected therapy center and therapist and are determined by income and financial challenges. For example, clients who have fallen on difficult financial times have the option to agree to a sliding scale fee based on their current financial situation here at Room To Breathe Psychotherapy & Yoga. Like many other therapy centers, we require a financial agreement when a client chooses a sliding scale fee, such as a required financial check in on the 8th session to determine if the fee can be increased as their financial burden decreases. Aside from sliding scale options, it is also important to stay informed and up to date on matters of insurance and mental health care. Another option is to reach out to a counseling center and inquire about attending sessions bi-weekly to decrease financial burden.
Many individuals are unaware of the Mental Health Parity and Addiction Equity Act, also known as the Parity law. The Parity law requires insurance plans provide similar coverage for behavioral health, mental health, and substance-use disorders as they do physical health, as well as one deductible for both mental health and physical health rather than having two separate deductibles. The parity law applies to most insurance benefits through the Affordable Care Act (Obamacare), most Medicaid programs, employer health coverage, and the Children’s Health Insurance Program. It is important to note that, under the Parity law, the deductible out-of-pocket cost is still required to be met before your insurance covers mental health services. However, checking with your insurance company is suggested to ensure a proper understanding of how and if the Parity law applies to your health insurance plan.
What I’m hoping you take from this is that you are deserving enough, worthy enough, to say yes to seeking and receiving mental health therapy services. Ask yourself what current investments can be adjusted or eliminated, take advantage of free financial guidance services, such as an insurance agent, sign up for money-saving apps to allow for improved financial planning, advocate for your needs by contacting your policy holder and discussing options, and reach out to therapy centers and ask for guidance.
Interested in working with Kelly? Connect with her at Kelly@RoomToBreatheChicago.Com