Key to efficient and accurate mental health billing services
Understanding mental health billing and coding is a complex process. Different aspects of care require staff to follow unique codes. This blog will break down which codes your practice should use for specific circumstances.
Here are the top elements to keep in mind to maintain accurate mental health billing services.
Billing for Diagnostic and Treatment Services
Practices use the International Classification of Diseases (ICD) coding system to bill for diagnoses. Treatment billing has two code options: Current Procedural Terminology (CPT) and the Healthcare Common Procedure Coding System (HCPCS).
ICD 10 Overview for Mental Health Diagnosis
The ICD-10-CM model provides a classification system for diseases and injuries. Practices report diagnoses using this model to both private and public insurers.
CPT Overview for Mental Health Treatment
The American Medical Association developed CPT codes. This system has numbers associated with each service a physician may provide. Insurers use these numbers to determine how much reimbursement to provide a practice.
The procedural codes for mental health (codes90785-90899) are found in the Psychiatry section of the CPT code set. Codes originating from this section can be delivered by clinical psychologists, licensed professional counselors, licensed marriage and family therapists, and licensed clinical social workers.
HCPCS Overview for Mental Health Treatment
Coders use HCPCS codes when dealing with Medicare and Medicaid.( The Centerfor Medical Services (CMS) monitors this code set. Both programs use Level 1and Level 2 codes. Medicaid typically uses Level 2 codes, and Medicare typically uses Level 1 codes. Medicaid has exclusive access to some Level 2codes.
Most mental health Providers code only Using Level 1 Codes. Medicaid required to use Level 2 alphanumeric codes that are provided by non physicians HCPCS Code range from H0001- H2037
Billing For Counseling
Physicians spend significant time counseling patients and coordinating patient care. These actions fall under Evaluation and Management (E/M) services. It's easier to justify high levels of E/M compared to other services. Therefore, they frequently receive higher reimbursement levels.
As defined by CPT codes, counseling must involve a discussion with a patient, and/or their family, or another care giver. This conversation must involve one or more of the below categories.
● Patientand family education
● Recommended diagnostic studies
● Diagnostic results
● Impressions
● Risks and benefits of management (treatment) options
● Management (treatment) instructions
● Follow-up
● Significance of complying with chosen management (treatment) options
● Riskfactor reduction
Documenting Medical Records
When documenting services, your staff must maintain consistent standards. Failing to accurately record procedures is devastating to long-term stability. To avoid this destabilization, your medical records should support codes you included in an insurance claim.
Ensure that your physicians are writing legibly and including all necessary treatment details. These details include:
● Reasonfor visit
● Relevanthi story
● Examination findings
● Priordiagnostic test results
● Clinical impression
● Assessment
● Planfor care
● Date
● Identity of observer
Unless easily inferred, physicians must document the reason for ordering ancillary services and diagnosis. Also, identify appropriate health risks, patient's progress, response to change, and revisions to diagnosis.
Coding complexitie scan overwhelm an Mental Billing. Consider hiring a professional coding company to reduce the stress your staff endures. Plutus Health offers an expert team that excels at accurately coding services and billing quickly. Talk with a representative to hear how we’llimprove your practice’s financial processes.
Key Takeaways
1. Know the distinction between diagnostic and treatment services.
2. Learn the ICD and CPT overviews.
3. Understand nuances in HCPCS codes.
4. Study when a conversation falls under Evaluation and Management.
5. Keep accurate and detailed medical records.
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FAQs


ABA providers are grappling with high staff turnover (up to 65%), rising burnout, administrative overload, and stagnant reimbursement rates. These challenges directly impact care continuity, clinical outcomes, and operational performance.


Operational inefficiency costs ABA teams up to 10 hours per staff member per week, contributing to burnout, denied claims, and longer accounts receivable (A/R) cycles. These inefficiencies ultimately result in reduced revenue and patient dissatisfaction.


Burnout leads to costly turnover, lower client retention, and decreased productivity. Recruiting and replacing a BCBA or RBT can cost up to $5,000 per hire, plus months of lost revenue and disruption to morale.


High-performing ABA organizations invest in clear career pathways for BCBAs and RBTs, align compensation with market benchmarks, and foster peer-led mentorship, flexible schedules, and wellness programs.


Automation tools like Plutus Health's Zeus streamline eligibility verification, denial management, and billing, reducing manual workloads by 5–10 hours weekly per clinician and improving clean claim rates by 95%.


Outsourcing revenue cycle management can improve collections, reduce denials by up to 30%, and free clinicians from billing-related admin tasks, resulting in better client care and financial outcomes.


One $200 million ABA network partnered with Plutus Health to automate eligibility and accounts receivable (A/R) processes. The result: $2M reduction in legacy A/R and a 97% Net Collection Rate.


By improving operational efficiency, investing in technology, and ensuring workforce stability, ABA leaders can align outcomes with reimbursement. Plutus Health supports this transition with scalable RCM and automation strategies.
FAQs


ABA therapy billing is the process of submitting claims to insurance or Medicaid for Applied Behavior Analysis services provided to individuals with autism or developmental disorders. It includes using correct CPT codes, proper documentation, and adherence to payer-specific policies.


Common CPT codes for ABA therapy in 2025 include:
- 97151 – Assessment and treatment planning
- 97153 – Direct therapy with the patient
- 97155 – Supervision and modification of behavior plan
- 97156 – Family adaptive training
- Always check with payers for any annual changes.


To bill Medicaid for ABA services, providers must ensure credentialing is complete, services are pre-authorized, and claims use the correct codes and modifiers. Medicaid requirements vary by state, so always follow state-specific billing rules.


Common ABA billing mistakes include:
- Incorrect or missing CPT codesplan
- Lack of documentation or treatment
- Uncredentialed providers rendering services
- Submitting duplicate or late claims


Without proper credentialing, providers can’t get reimbursed. Insurance and Medicaid require that BCBAs, RBTs, and organizations are credentialed and contracted. Delays in credentialing often cause revenue losses and claim rejections.
FAQs


CMS proposes a 2.4% increase in Medicare ASC payment rates, contingent on meeting ASCQR quality reporting requirements. Plutus Health helps ASCs meet these compliance benchmarks by integrating quality reporting data into RCM workflows, ensuring eligibility for full payment updates.


The ASC Covered Procedures List will expand by 547 procedures, including cardiology, spine, and vascular surgeries. Plutus Health supports expansion into new service lines by customizing RCM processes for high-acuity procedures, minimizing claim denials during the transition.


Site-neutrality narrows the payment gap with hospital outpatient departments, enhancing ASCs' cost-efficiency appeal. Plutus Health helps leverage this advantage in payer negotiations by providing performance dashboards and cost-justification analytics to secure stronger reimbursement terms.


Complex procedures increase denial risk and slow cash flow. Plutus Health's automation-first RCM model delivers 95%+ clean claim rates, reduces A/R days, and safeguards margins, even as your case mix becomes more complex.