How to Bill for Group Therapy: A Mental Health Provider’s Handbook
Learning how to bill for group therapy is critical for mental health providers because errors in billing can lead to denials and delayed reimbursements. Since group therapy has unique CPT codes and payer rules, providers must follow clear steps to avoid mistakes. This handbook outlines the process, common errors, and best practices in billing for group sessions.
Table of Contents
1. Understanding CPT Codes for Group Therapy
When you learn how to bill for group therapy, start with the correct CPT code. Most group sessions use 90853 (group psychotherapy, non-family). This code covers therapeutic group activities, but excludes family or multiple-family sessions. Always confirm if the payer accepts 90853 for the service you deliver.
👉 “Using the wrong code in billing is like dialing the wrong number—you’ll never reach the right person.”
2. Document Each Patient Separately
To bill correctly, providers must document each participant individually. Even if all patients attend the same session, insurers require notes that show progress for every person. If you understand how to bill for group therapy this way, you reduce denial risk and create proper records for compliance.
3. Verify Insurance Coverage Before Sessions
Before billing, verify whether group therapy is covered by each patient’s insurance. Not all plans include it, and some require prior authorization. By checking coverage ahead of time, you avoid claim rejections later. This step is essential when mastering how to bill for group therapy efficiently.
For more on coverage basics, see the National Alliance on Mental Illness (NAMI) guide to mental health insurance.
4. Apply Correct Billing Modifiers
When learning how to bill for group therapy, know that some payers request modifiers. These clarify whether the service is in-person, telehealth, or linked to another therapy code. Always review payer guidelines to determine if modifiers are required for your claim.
5. Avoid Common Mistakes in Group Therapy Billing
Common errors in billing group therapy include:
Using the wrong CPT code.
Submitting a single note for all participants.
Missing authorization records.
Failing to update payer rules.
Avoiding these mistakes is central to understanding how to bill for group therapy successfully.
6. Billing for Telehealth Group Therapy
Since telehealth became widespread, many providers ask how to bill for group therapy sessions conducted online. Most payers now reimburse CPT 90853 with a telehealth modifier. Always confirm the payer’s telehealth coverage and use the appropriate place-of-service code.
7. Keep Compliance in Mind
Following compliance rules is vital in billing. When you know how to bill for group therapy, you also protect your practice from audits and recoupments. Compliance requires proper documentation, accurate codes, and adherence to payer regulations.
For coding guidance, review our blog on mental health billing codes.
8. Tracking Payments and Posting Correctly
After you bill, payments must be posted correctly. Misapplied payments create confusion for both providers and patients. Learning how to bill for group therapy includes managing clean posting practices. See our article on payment posting in mental health billing to connect billing accuracy with reporting clarity.
9. When to Seek Expert Help
If billing errors, denials, or delays become routine, it may be time to seek outside support. Outsourced billing teams already know how to bill for group therapy across multiple payers, saving providers time and reducing claim losses.
For professional standards, the American Psychological Association’s billing resources provide additional guidance.
FAQs: Outsourcing Behavioral Health Billing
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Need help learning how to bill for group therapy without constant denials? At MBW RCM, we provide expert billing support for mental health providers.👉 Request More Information by filling out the form below.
