Does Medicaid Cover Therapy?

Does Medicaid Cover Therapy?

Last Updated on February 28, 2022 by Anne-Sophie Reinhardt

This article explores the question, “does Medicaid cover therapy?”. Yes, Medicaid covers mental health and therapy. However, your Medicaid coverage highly depends on the program you’re in and your Medicaid provider.

Every state has different Medicaid coverage. This means that the amount of therapy you receive may differ depending on where you live. This is because even if the federal laws govern Medicaid, the US States does not require the offering of optional benefits

So, it is important to clearly define what therapy is and how urgent you are interested in getting it. This will impact whether or not treatment will be covered. Medicaid plans cover therapy for behavioral and mental conditions. However, coverage for substance abuse is not available.

Children covered under the CHIP (Children’s Health Insurance Program), are eligible to receive full mental health services. Initiatives are being taken to provide full therapy coverage for those over 21 and those who suffer from substance abuse.

What Is Therapy?

Counselling or psychotherapy is a form of therapy that involves sessions with therapists to address issues. These problems, for such as difficult relationships and problematic behavior.

Therapy can help you become the best version possible of yourself, and live a happier life. Therapy can also help you overcome painful emotions, improve relationships, and change your self-destructive ways of thinking.

All types of therapy will require you to establish goals and decide the steps to reach them. You should also know that these sessions are confidential and can be used to discuss any topic, regardless of whether it is personal, couple, or group therapy.

What Kinds of Therapy Does Medicaid Pay for?

Medicaid covers many types of therapy. Medicaid coverage is available if the doctor provides a fact-based, medically appropriate plan that suits your diagnosis. The following are some of the therapies that Medicaid covers:

1. Cognitive Behavioral Therapy (CBT)

CBT is a skill-based approach to conversational therapy. These sessions are a team effort between you and your therapist to identify your fears and problems. CBT teaches you how to use strategic approaches to solve your problems. The sessions can last anywhere from six to several months. Medicaid usually pays once-a week sessions with a therapist.

2. Dialectical Behavioral Therapy (DBT)

DBT is a skill-based method of psychotherapy that incorporates elements of cognitive-behavioral treatment and mindfulness practices. In short, this is originally for women with BPD, borderline personality disorder or BPD.

There has been an expansion to include this treatment for a variety of patients. DBT usually consists of individual and group sessions. These sessions aim to improve four key skills: emotional control, stress tolerance and mindfulness.

3. Child-Parent Psychotherapy (CPP)

This is a therapeutic intervention program for children that are 0-5 years. These children are those who have had at least one trauma. This can be sexual abuse, domestic violence or the death of a family member. Medicaid covers the cost of CPP sessions for one-hour sessions and once-a week sessions with the parent and child. Home sessions are available for children that are unable to leave the house.

4. Acceptance and Commitment Therapy (ACT)

ACT is a form of psychotherapy that aims to help you feel optimistic about your life. This therapy teaches you how to cope with negative thoughts and emotions, without seeing them as limitations.

5. Eye Movement Desensitization and Reprocessing (EMDR)

EMDR, a mental health treatment that uses psychological mediation instead of psychotherapy, is a method for treating mental disorders. EMDR helps people deal with trauma. It involves you telling your therapist about a traumatic event.

The therapist will then lead you through a series of eye movements. Eye movements are thought to be neurologically linked to brain information processing. They can also help overcome negative memories and elevate emotions.

6. Mindfulness Practices

There are many types of mindfulness practices. And, these practices can help you to be more aware of your surroundings and yourself in a non-judgmental manner. In short, mindfulness focuses on calmly managing your thoughts and emotions.

What Kinds of Therapy Doesn’t Medicaid Pay for?

Although Medicaid covers most therapy, it does not cover massage therapy, aromatherapy and reflexology.

Medicaid doesn’t cover energy exertion, such as Reiki healing, or treatments by professionals who don’t hold professional credentials and aren’t authorized by Medicaid.

How Much Do You Pay Out-Of-Pocket for Therapy with A Medicaid Plan?

Most plans will require you to pay a copayment between 0 and 25 USD for each therapy session with a Medicaid-approved therapist. In short, this means you will be responsible for paying the copayment each time you attend a therapy session.

Each state offers its own Medicaid program, so the out-of-pocket costs can vary. The government values behavioral and mental therapy, so most Medicaid plans make it easier to see a therapist.

In some states, Medicaid has a cap on the number of sessions that can be provided by therapy. The limit is usually 30 sessions per calendar year. After you exhaust your paid visits, the session will have to be paid for entirely.

Does Medicaid Pay for Online Therapy?

Yes, Medicaid will pay for online therapy. Medicaid must approve the online therapist.

Because of the pandemic, it is possible that Medicaid may reconsider its online therapy approach. If you are considering online therapy, make sure to check your Medicaid plan before you sign up. It ensures that you still have coverage.


Medicaid greatly influenced the direction of public mental healthcare. Their coverage for therapy has increased and provided incentives to public-based providers. It also changed the economic laws that govern public mental health. This forced State governments to adjust their approach and many people now have access to mental health care.

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