Do you want to take insurance in your Canadian private practice? Are you feeling frustrated with managing your direct billing? What is the best way for small business owners to handle their energy and time when it comes to collecting payment?
Once you have your license number, it is much easier to be recognized by Canadian insurance companies as a provider. Unfortunately, a lot of plans don't recognize Counselling Therapists or Psychotherapists yet. Although, this is slowly changing day by day!
In This Episode:
The difference between taking insurance in Canada and the US
Collecting Payment
Canadian Direct billing
Contacting insurance companies
How to invoice
EAP programs
The difference between taking insurance in Canada and the US
In the US, you have to apply to be on company insurance panels. Therefore, for counsellors in the states, it can take a lot more work before they can accept insurance from their clients.
Luckily in Canada, this is not the case! As licensed Counselling Therapists or Psychotherapists, we do not have to ask most insurance companies to be put onto their insurance system. If you have the license number, then you qualify for automatic approval with many Canadian insurance companies!
It is beneficial to help promote counselling in your province, and to promote getting a regulatory body so that you can get a license number! By being able to accept insurance, it will make your counselling services more accessible to more clients.
Collecting Payment
Even if you are a candidate, you are still covered by insurance companies!
There are two options for collecting payment:
Your clients can submit their invoices to their insurance companies who will then pay the clients back directly
You can submit the invoice to the client's insurance company yourself and get paid directly from the insurance company (direct billing)
Direct billing
I don't personally use direct billing because it can be a hassle. Each company has a different system of paying therapists out, with different websites and login details, so it can take a lot of admin time to be paid.
Keep in mind that if you do choose to offer direct billing, you will be spending a lot of energy and unpaid time outside of sessions to receive your fee. As a small business owner, it may not be the best investment of your time and energy.
Whatever you decide to do, make it clear on your consent forms and when you are meeting a client for the first time.
Reach out to insurance companies
In my seven years of Canadian private practice, the top three insurance companies that employers use for plans for their employees:
Sunlife: although some of their plans don't cover RCTs or RPs
BlueCross: over the next few years they will start to include RCTs in their standard plans
ManuLife: clients are mostly covered
Write up accurate and helpful invoices
Be proactive with writing up invoices that have all the information your client will need in order to submit to their Canadian insurance company for possible reimbursement. .
Make sure to include things such as:
The provider (you)
Your client's name
The business address
The telephone number
Your license number
The service provided
The date of the service
The session length
The fee
The HST (which needs to be separate from the fee for most insurance companies)
EAP programs
Sometimes employers can offer an EAP – Employee Assistance Program or EFAP – Employee & Family Assistance Program. You can apply to be a contract therapist in many of these programs, BUT many EAPs don't often pay therapists a lot, and they can require a lot of paperwork.
Connect with me:
Resources Mentioned and Useful Links:
Ep 59: John Hubert: Regulation and Why It Is Vital for Canadian Counsellors
Article: How to Set Up a Canadian Private Practice Website
Listen to my Canadian private practice journey up until now!
Sign up for my free e-course on How to Start an Online Canadian Private Practice
Jane App (use code FEARLESS for one month free)
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