Coding is required in behavioral health for billing, compliance, and maintaining patient care continuity. CPT H0004 and H0005 are very important HCPCS codes used in Medicaid. These Medicaid counseling codes apply to individual counseling therapy and group therapy, respectively. Medicaid and many private insurance companies reimburse these codes according to their policies.
These two codes are different in many aspects, but are mostly misunderstood due to their resemblance to counseling therapy. Proper knowledge and guidelines can help understand and differentiate these two codes very easily.
In this article, we will discuss the differences between these codes, providing examples and scenarios, as well as some documentation tips that will help providers avoid denials.
What are H0004 & H0005 Codes?
H0004 describes individual substance abuse counseling. It is linked with a 15-minute patient consultation and billed out on a per-patient basis. During the session, mental health evaluations, CBT, and relapse prevention strategy sessions are provided in a one-on-one setting.
H0005 applies to Group substance abuse counseling. H0005 applies to group counseling sessions.
Organized sessions, which are conducted by Licensed counselors and involve two or more patients, come under the roof of this code. These group sessions are a staple feature of outpatient rehabilitation for addiction.
These two codes are different from psychotherapy codes and have their own rules for documenting and billing.
Clinical Applications & Eligibility
H0004 (Individual Counseling)
Individualized treatment for effectiveness and engagement in the treatment of substance use and co-occurring mental health disorders is commonly documented as H0004. It may include evidence-based approaches such as:
· Cognitive behavioral therapy
· Motivational interviewing
· Trauma-informed care
The patient must meet the criteria for a diagnosis and have a clinically justifiable need to attend individualized sessions.
Who can bill H0004:
· Licensed counselors
· Enrolled providers by Medicaid
· Clinicians authorized under supervision
H0005 (Group Therapy)
H0005, which is referred to as code for group therapy, is mainly utilized in outpatient recovery facilities. It extends to services such as:
· Alcohol education groups
· Coping skill development
· Relapse prevention training for patients with substance use disorders
The group must be conducted by a licensed clinician, and the participants must engage actively.
For billing purposes, each participant is charged one unit per session provided the minimum group size is achieved (which is typically 2 or more participants).
Who can bill H0005:
· Certified addiction counselors
· Behavioral health professionals
· Enrolled agencies with Medicaid
Clinical Scenarios & Examples
A 32-year-old lady with stress order with post-traumatic stress disorder (PTSD) and a history of synthetic drug use is now receiving cognitive behavior therapy with a counselor for 45-minute sessions once a week.
· Use Code: CPT H0004 x 3 units
· Documentation: Recording treatment start and end times, type of intervention (CBT), therapy objectives, and client’s milestones.
Scenario 2: H0005 (Group Therapy)
An outpatient rehabilitation clinic runs a 60-minute group session for 8 participants, focusing on craving control and avoidance of high-risk contexts associated with alcohol use disorder.
· Use Code: H0005 x 1 unit per eligible participant
· Documentation: Listed participant names, therapeutic objectives for the group, documentation of the instructor’s engagement, and summary of group interactions.
Scenario 3: Same-Day Billing Warning
A patient joins an individual session and then a group therapy session on same day. Most Medicaid policies do not allow dual billing of H0004 CPT and CPT code H0005 on the same day unless certain criteria are met. Check with your payor policy.
Comparison table: CPT H0004 Vs CPT H0005
| Code | Service Description | Time Duration | Use Case | Typical Provider | Common Setting |
| H0004 | Behavioral health counseling and therapy, per 15 minutes | Billed in 15-minute units | Individual therapy, general counseling sessions | Licensed counselors, therapists | Outpatient MH/SUD programs |
| H0005 | Alcohol and/or drug services; group counseling | Usually 45–60 minutes/session | Group therapy focused on substance use recovery | Substance abuse counselors, LADC | Intensive outpatient (IOP), SUD group sessions |
Billing Procedure & Reimbursement Tips
Unit length:
· H0004: One unit = 15 minutes
· H0005: One unit = one group session
Use Modifiers:
· GT or 95 for telehealth
· HQ for group settings
Annual billing limit:
· Some Medicaid plans allow adding 26 individual sessions per year
· 135 group sessions per year
Best Practices
· Always outline clinical justification (e.g., why is the individual or group included?).
· Monitor cumulative unit utilization to avoid denials because of exceeding caps.
· Billing should capture the appropriate time and session content
These practices assist in avoiding payment rejections while ensuring adherence to the Medicaid behavioral health billing thresholds.
Documentation Essentials
H0004 document requirements
· Document start and stop times for each 15-minute segment.
· Specify type of intervention (e.g., CBT, MI, psychoeducation).
· Mention progress toward goals and the client’s reactions.
H0005 document requirements
· List group participants by number and name
· Determine session theme (e.g., relapse prevention, emotional regulation)
· Describe the clinician’s role and therapeutic delivery
In both situations, make strong cases for service medical necessity, particularly where records are subject to audits and compliance with payer requirements.
Common Errors and Recommended Workflow Enhancements
H0004 and H0005 should not be billed on the same day
· Required modifiers, HQ or telehealth indicators, should always be included
· Group size, time duration, and content must be documented accurately
· Codes must correspond with the treatment plan and medical necessity
· Make use of EHR systems that alert users to flagged errors and monitor service units
· Educate staff using payer and license-specific coding rules
Trends & Regulatory Notes
Telehealth services have grown greatly since the onset of COVID-19. It appears that multiple regions are now permitting both H0004 and H0005 through telehealth with proper documentation and modifiers. This change has increased the risk of audits, so precision is more critical than ever.
Documentation scrubbed accuracy is a metric under the value-based payment system. Stay up to date with HCPCS coding changes for substance use disorder treatment and Medicaid policy manuals to remain compliant.
Use proper modifiers to show the online session, and check with the payer’s policies allows it or not before billing.
To ensure complete behavioral health documentation and reimbursement, many providers also include annual depression screenings using G0444 for 15-minute evaluations alongside counseling sessions.
Conclusion & Key Takeaways
A comprehensive understanding of H0004 vs H0005 enables compliant and precise behavioral health billing.
· H0004 for Individual substance abuse counseling (per 15-minute unit)
· H0005 for group counseling (per session)
Ensure accurate documentation, appropriate modifiers, and billed services align with treatment objectives. Guarantor guidelines must be adhered to for proper reimbursement and ethically effective care delivery.
A professional billing partner can assist you with accurate coding, allowing you to focus on the patient’s health. So, search for a good billing company and get your work done with no denials.
