How much can I expect to pay for therapy?

I’d estimate that each session might cost you $. But if you already have someone in mind and you know what they charge, you can adjust your rate.

Great! Now for the tricky part:

We’re gonna need some details on your plan’s mental health benefits. You can check online, or call your insurance company’s help line to have a real person explain everything. You’ll want to know:

• Is therapy delivered in an office setting covered by your plan?
• If your plan has a preferred network, what’s your co-payment for an in-network provider?
• What is the co-insurance rate for an out-of-network provider?
• What is the approved amount for each therapy session?
• What is your current deductible?

When you’re ready, let’s walk through the options.

Nice!

Let’s apply your insurance and see if that lowers your costs.

Not a problem.

The coverage you have may still be helpful. Let’s check. I entered some example amounts here for you, but you should adjust them.

There’s another thing to check: tax deductions.

I know, thinking about taxes right now is kinda terrible. But deductions might make a big difference. Taxes come into play if you’re eligible for a Flexible Spending Account (FSA) or a Health Savings Account (HSA). You may even be able to deduct your therapy bills directly.

Set your FSA contribution.

The more you contribute here, the more you can lower your tax burden. But there's a few things to keep in mind:

• The maximum allowed in 2019 is $2,700.
• You can’t change your FSA contributions mid-year. You'll have to wait for your next open enrollment period. This part of the calculation is only useful for future planning.

If you’re already using an FSA, you may not have enough room left to add the full amount of therapy. In that case, take the maximum if you can.

Otherwise, let’s assume you can bump up your FSA contribution by:

Set your HSA contribution.

First, let’s make sure you’re in the right place. Some things to keep in mind:

• You can only have a Health Savings Account if you also have a qualifying high-deductible health plan.
• If you do have an HSA, the maximum amount you’re allowed to contribute in 2019 is $3,500 for an individual, or $7,000 for a family. You can change the amount you contribute at any time during the year.

If you’re already contributing, you may not have enough room left to add the full amount of therapy to your HSA. In that case, take the maximum if you can.

Otherwise, let’s assume you can bump up your HSA contribution by:

There’s a tax trick that might be of use to you: if your medical bills are more than 7.5% of your Adjusted Gross Income in 2019, you may be able to deduct them.

Your Adjusted Gross Income is your household income minus any deductions, like student loan payments or mortgage interest.

A few things to know:

• This only applies to therapy that counts as medical care, so you should talk to your therapist during your intake about your diagnosis. Things like marriage counseling may not count.
• You'll have to itemize your deductions to do this. In 2019, you'll only save money if your medical expenses (plus your other deductions like loan interest and charitable contributions) add up to more than $12,200 for a single person, or $24,400 for a married couple.
• I can’t know what all of your deductions might be, but I can tell you this: without additional deductions, your therapy bills are currently % of your Adjusted Gross Income.

We’re all done!

Averaged over a year, each therapy session could cost you: $

A year of therapy could cost you: $

But you’ll have saved $ by using your insurance and $ on your taxes.