How Telehealth Billing benefits Mental Health Providers

Mental Health Billing

By Hannah Parker | October 21, 2022

4 mins read

Last Updated: September 8, 2025 By Hannah Parker

Telehealth Billing Partner

Undoubtedly, mental health billing is already quite challenging especially due to the ever-changing policies. Working with new codes and billing procedures, being HIPAA compliant, and knowing the mental health services covered in telehealth are just the starting of the pain points. There is also a need to be aware of the new software and technology used in telehealth billing, specifically for mental health. In such a scenario, implementing telehealth billing effectively can be pretty advantageous for mental health providers. 

How does an effective Telehealth Billing benefit Mental Health Providers?

We all know that the telehealth billing process has different terminologies, billing codes, CPTs, and modifiers. As a practitioner of telehealth in mental health services, the billers and coders have to be aware of all the changes of Medicare, Medicaid, and private insurers, while using the EHR  to warrant better telehealth services.

Here are some benefits that an effective telehealth billing can offer to the mental health providers:

1. Reduce Billing Errors

When it comes to mental health, the telehealth billing starts with the location of the patient and the provider during the visit, along with the service given by the practice. Hence, an effective telehealth billing would involve the following:

  1. Originating site: It has to state the patient’s location during the treatment to get approved by Medicare. 
  2. Distant site: The location of the service provider during the visit.
  3. Place of service: The code is given for the telehealth billing to inform the originating and the distant site since the payer rates change based on the physician’s location during the service.
  4. Practice type: It informs the payer about the service given to the patient.

But these are not all; CPT codes are used with ICD codes and some modifiers to make the payment process smoother. Added to these, all these involve submitting them electronically on ANSI 837 EDI.

All these details can be easily missed by the telehealth biller when they are looking after other administrative aspects. That’s why it is important to ensure the billers have the proper training, keep up to date with their knowledge and submit the claims timely.

2. Billing Compliance

Telehealth billing is not only complicated but also ever-changing. Mental health is even more challenging than keeping up to date with the changes implemented by Medicare, Medicaid, and other third-party medical insurance companies. The billers have a full-time job to ensure they adhere to all the payer’s protocols. Hence, they need to stay up-to-date with every bit of change in the requirements and regulations set by the insurers, the government, and any other medical industry to warrant the claim submissions are clean and without any errors.

3. Increase revenue

With telehealth billing in mental health, it has been proved that overhead costs are reduced, and timely submission of the claims is ensured with almost error-free billings. All these points to the fact that there is a significant way to increase the practice’s revenue. With the best-trained staff and the latest billing technology, you can put the best revenue cycle management in place to improve the turnaround.

4. Enhance Patient Satisfaction

When the telehealth billing and coding is carried out effectively, the ability to concentrate on patients and their requirements is much better. With correct billing, the reimbursement is hassle-free, which offers the patient relief. It means that their claims will be complete without any issue, thus receiving uninterrupted services. The patients can also receive a professional and courteous reply regarding their billing from the telehealth staff.

How to Add Expertise In Telehealth Billing For Mental Health Providers? 

Did you know the lack of knowledge in correct billing (often in telehealth and telemedicine) results in revenue loss up to 3.3 percent annually. One of the best ways to mitigate the challenges and requirements often imposed by the billing system in telehealth is by working with an experienced telehealth billing partner such as Info Hub Consultancy Services (ICS). These medical billing partners with experience in telehealth billing can offer extensive help in improving revenue and overall patient care.

Finding a partner like ICS for your telehealth billing for mental health services will provide you with a dedicated and specialized team. They will ensure no claim denials and rejections using the correct coding, and billing.

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