About 65% of respondents said they would not be able to afford therapy if their health insurance didn’t cover it. (LifeStance Health Survey, 2024)
This shows just how important it is for therapists to credential with insurance companies as a therapist. Insurance credentialing allows you to become an approved provider so clients can use their insurance benefits for therapy. This not only improves your client base but also ensures a steady and reliable revenue flow. Although the process may seem complicated at first, once you understand each step, it becomes much easier to manage.
In this blog, we’ll learn how to credential with insurance companies as a therapist and also mention some mistakes that could cause a delay in approvals.
What Is Insurance Credentialing for Therapists?
Insurance credentialing or insurance panelling is the process that insurance companies use to verify your qualifications, licenses and background. When you credential with insurance companies as a therapist, the insurer reviews and approves your documents to confirm that you meet their professional standards. Once approved, you are added to the network as an in-network provider meaning clients can easily find you through insurance directories and book sessions using their insurance coverage.
Credentialing is not just a regulatory requirement, it makes your practice a lot more sustainable. It is vital for therapists and mental health providers who rely on referrals and accessibility through insurance networks.
To understand more about credentialing in healthcare, check this guide on What Is Credentialing in Healthcare and Why It’s Important.
How to Get Credentialed with Insurance Companies?
Sometimes getting credentialed feels a lot complex…It takes patience, attention to every detail and a lot of paperwork.
Here we have explained every step in detail:
Step 1 – Gather all the Required Documents
Make sure that you have all these documents before applying:
- Updated resume or CV
- National Provider Identifier (NPI) number
- State license(s) and certifications
- Malpractice insurance
- W-9 form and Tax ID
- Practice address and contact details
If any of your documents are missing or outdated, it will cause a delay in the overall process.
Step 2 – Create or Update Your CAQH Profile
CAQH, short for the Council for Affordable Quality Healthcare, is what most insurance companies rely on to verify your credentials. It’s important to keep your profile complete and updated. It should include your work history, liability insurance and license renewals. If any of this information is incomplete, it can delay the process for weeks.
Note: An incomplete CAQH profile is one of the top reasons applications get delayed.
Step 3 – Choose the Right Insurance Panels
Once all your documents and CAQH profile are ready, choose the insurance networks that you want to join. Each insurance network will have its own requirements and timeline. It is recommended to apply to multiple networks to get better client access. Some of the most common ones include:
- Blue Cross Blue Shield
- Aetna
- Optum
- Cigna
- UnitedHealthcare
If you also offer remote sessions, you may want to understand Telehealth Billing for Therapists as you prepare for credentialing.
Step 4 – Verification and Review
Once your application is submitted…It goes through a detailed verification process.
This step usually takes 60-120 days depending upon the insurance company and the state’s regulatory requirements. During this process, the insurers may ask for additional documents and clarification. If there is any delay in your response, it can further delay the whole process.
Step 5 – Contract Signing & Network Enrollment
Once approved, you will receive a provider agreement.
This document has all the reimbursement rates, policies, and billing terms in detail. Review it carefully and then sign the agreement. Once signed, you’re officially part of the insurance network.
How Long Does the Credentialing Process Take?
On average, it takes around 2-4 months to get credentialed with an insurance company. The exact time depends on different factors…
- The insurance company’s workload (Some Insurance companies take longer due to the internal review process)
- How complete are your documents? (Incomplete licenses or W-9 forms can result in delays)
- State and licensing requirements (Some states have strict verification policies, which can cause a delay sometimes)
In short, all these things have to be done right.
How Much Does Credentialing Cost for Therapists?
If you manage the credentialing yourself, it is usually free…but it requires around 20-30 hours of work per application.
Hiring a credentialing service typically costs $150 to $300 per application, but it is worth the investment.
Some Common Mistakes Therapists Should Avoid
These are some of the most common mistakes that can delay your credentialing process…
- Missing or expired malpractice insurance
- Incomplete CAQH profiles
- Incorrect Tax ID or NPI number
- Submitting duplicate applications
- Not updating your address or credentials
Why Therapists Should Get Credentialed?
Why not? It is one of the most important steps a therapist can take for long-term stability…Here’s how
- It builds trust and visibility with your clients.
- You can ensure a consistent income stream as a therapist through insurance reimbursements.
- It opens up opportunities with large employer networks and insurance referrals.
Also, staying up to date with Insurance Eligibility Verification improves your billing accuracy once credentialed.
How Providers Care Billing Can Help?
At Providers Care Billing, we help therapists and mental health providers credential with insurance companies as a therapist by managing the entire process from start to finish. Our team handles all your documentation, CAQH updates and form submissions while keeping you informed every step of the way. We also offer medical billing services that simplify your daily workflow. From approvals to rejections and claim management, we take care of everything so you can focus on what matters most: your clients. If you want to get started or have questions, feel free to contact us.
FAQ’s (Frequently Asked Questions)
How to credential with insurance companies as a therapist?
If you want to get credentialed with an insurance company, then follow these simple steps…
- Gather all your Documents
- Set up your CAQH Profile
- Choose an Insurance Network (Atena or Blue Cross)
- Verification and Review
- Contract Signing & Network Enrollment
What is behavioral health credentialing?
It is the process that allows therapists and mental health professionals to join an insurance network and get direct reimbursements for covered services from the insurance.
Can I start seeing clients while waiting for credentialing approval?
You can see clients as a part of your private practice for those who are willing to pay. But you can’t bill insurance companies until your credentialing process is complete and you are officially an in-network provider.
How often do I need to recredential?
Most Insurance companies need recredentialing after every 2-3 years. It helps keep your information updated and maintain your active status as an in-network provider.
What happens if my credentialing application gets denied?
If your credentialing application isn’t approved, the insurance company will usually explain the reason in its response. You can apply again after correcting the mistake.
You can also appeal if you think there is an error in the denial.
