Behavioral Health Billing Fundamentals
Behavioral health billing requires careful attention to session timing, place of service, and payer-specific documentation rules that differ significantly from general medical billing. Psychotherapy codes are time-based, and selecting the correct code depends on the actual face-to-face time spent with the patient. Code 90834 covers 38-52 minutes of individual psychotherapy, while 90837 covers 53 minutes or longer. Billing 90837 when session documentation reflects only 45 minutes of therapeutic contact is a red flag for audits and can result in recoupment demands from payers.
Family therapy (90847, with the patient present) and group therapy (90853) each carry their own documentation requirements. Family therapy notes must identify all participants, describe the therapeutic interventions used, and explain how the session addressed the identified patient’s treatment goals. Group therapy documentation needs to reflect the individual patient’s participation and progress, not just a generic note about the group session topic. Payers deny group therapy claims when the note reads as a template rather than an individualized clinical record.
Psychological Testing and Authorization Challenges
Psychological and neuropsychological testing (96130 for the first hour of evaluation, 96131 for each additional hour) generates significant revenue but faces heavy prior authorization requirements. Most commercial payers and many Medicare Advantage plans require pre-approval for testing beyond a basic screening. The authorization request must include the clinical rationale for testing, the specific instruments to be administered, and the estimated total testing time. Submitting vague authorization requests citing “rule out ADHD” without supporting clinical documentation leads to denials.
Timely filing is a persistent challenge in behavioral health practices, particularly solo practitioners and small group practices that lack dedicated billing staff. Many behavioral health payers enforce 90-day filing windows, and some Medicaid managed care plans require claims within 60 days of service. Missing these deadlines results in permanent revenue loss with no appeal rights.
- Document exact start and stop times for every psychotherapy session to support time-based code selection
- Submit prior authorization for psychological testing with specific instrument names and estimated hours
- Track timely filing deadlines by payer, as behavioral health plans often enforce shorter windows than medical plans
- Individualize group therapy notes to reflect each patient’s specific participation and treatment progress