Medicaid Mental Health Coverage

Updated 12/13/2024

If you’re wondering if Medicaid covers therapy, the short answer is yes. However, there’s more to it than just a simple yes or no answer. While it’s true that a Medicaid plan offers benefits for certain mental health services like counseling, you must meet the criteria to be eligible. Further, the exact coverage for Medicaid services you’ll have will vary depending on factors like what state you live in.

Learning what’s covered as part of Medicaid mental health benefits — and what isn’t covered — can save you time, reduce your stress level, and, ultimately, save you money.

Read on to learn more about affordable mental health treatment options you can access if you have Medicaid coverage. We’re discussing everything from how many therapy sessions Medicaid covers to Medicaid therapy limitations and more.

Does Medicaid Cover Therapy & Mental Health Care Services?

Yes, you can gain access to mental health services, including therapy, with Medicaid’s mental health coverage, but there are some things to consider.

State-specific variations

The federal government sets baseline requirements for Medicaid services, but states can shape and design individual mental health service programs as they see fit, as long as they’re within federal guidelines and parameters. This means that different states can have different Medicaid plan variations that offer different behavioral health benefits.

Some states may offer broader coverage for behavioral health services, such as unlimited therapy sessions or comprehensive treatments for substance use disorder, while others may impose stricter limitations on the number of therapy sessions or types of mental healthcare covered. For example, specific treatment and counseling services covered in California, may not be accessible under a plan in Florida. 

It’s important to review your specific health plan and ask questions about what mental health services Medicaid covers in your state.

Provider variations

Another important factor to consider is provider availability, and the types of behavioral health professionals Medicaid covers. 

Network

Medicaid programs may have different networks of approved providers, meaning that not every mental healthcare provider will accept Medicaid. This could limit your options when seeking a therapist, psychiatrist, or counselor for your care. For example, some Medicaid services may only be available through a federally qualified health center (FQHC), while others allow for more flexibility in choosing private providers who accept Medicaid. 

Type of provider

Additionally, Medicaid coverage may vary by the type of provider you need. For instance, some Medicaid plans may fully cover cognitive behavioral therapy (CBT) or behavioral therapy provided by licensed social workers, but not by psychologists or certain specialists. In other cases, certain mental health conditions like severe substance abuse or obsessive-compulsive disorder (OCD) may require specialized care, and the availability of these specialists within the Medicaid network can differ.

It’s always a good idea to verify whether your preferred mental health care provider is part of the Medicaid network and to explore the options available to you for getting mental health support. Learn how to find a therapist covered by your insurance to ensure you have access to the mental health care you need without unexpected costs.

Mental Health Services Covered by Medicaid

Medicaid provides healthcare benefits to millions of Americans. It offers essential physical and mental health coverage to eligible low-income adults, pregnant women, elderly adults, children, and people living with disabilities. While therapy covered by Medicaid is virtually a given for anyone with a diagnosed mental health condition, the scope of coverage varies, and not all services are allowed.

Mental health services that Medicaid typically covers include:

• Outpatient psychotherapy — also known as talk therapy
• Sessions with psychologists, counselors, therapists, psychiatrists, and clinical social workers
• Behavioral therapy
• Medication management
• Psychiatric medications
• Community-based services such as case management and support groups for recovery ( available in some states )
• Some in-patient services for children and adults 21 years and younger
• Substance use disorder treatment

Limitations in Medicaid Mental Health Coverage

Like any healthcare plan, there are limitations to Medicaid therapy coverage. Understanding coverage limits and exclusions is crucial so you can be prepared for any therapy costs you might be financially responsible for as a Medicaid recipient.

Number of therapy sessions covered

The number of therapy sessions covered by Medicaid per year is one aspect that varies widely from state to state. In some states, Medicaid recipients have comprehensive benefits that will pay for an extensive number of sessions annually. Other states cap benefits after a certain number of visits.

Types of treatments not covered

Some mental health services fall outside the scope of what Medicaid offers and, thus, aren’t covered at all. Examples generally include anything considered experimental or not widely recognized by medical standards and treatments that aren’t heavily research-based.

Most of the following services aren’t covered in the majority of states:

• Holistic therapy and treatments
• Marriage counseling
• Couples counseling services
• Sessions with a life coach
• Massage therapy
• Experimental therapies
• Aromatherapy

State program differences

The differences between state programs range from the maximum number of sessions to the types of treatment that will be covered.

• Covered services: Factors like local regulations or budget constraints within state-specific Medicaid programs can mean something that might be commonly covered in one state but is a no-go in another.
• Cost: Nearly all states have Medicaid programs that offer mental health services at no cost. States that do require a copay typically make the rates very affordable — in some cases, as low as $2 – $4 per visit.
• Number of visits allowed: As noted, some states cap how many therapy session visits a Medicaid recipient can have in a year. Others set no limits and will enable you to have as many as you want or need. If you live in a state that only lets you have a set number of therapy visits, the cost of any sessions beyond that limit will be your financial responsibility.

How to Check Your Medicaid Mental Health Coverage

Understanding the benefits and services you have under Medicaid starts with looking at the guidelines and provisions of your state’s program. 

1. Identify your state’s Medicaid program

While a seemingly straightforward step, identifying your state’s Medicaid program is critical because each state can have slight nuances that are important to be aware of. Not only can benefits vary, but eligibility for coverage and the enrollment process can also be different.

To find this information, you can visit the official Medicaid website for your state or contact your state’s Department of Health and Human Services. You can get comprehensive details on Medicaid coverage, including how to apply, eligibility criteria, and the specific mental health services covered.

2. Access your Medicaid account online

Once you know your state’s program and where to find resources and support, you can create and access a personal account online (in most states). This is a simple way to review plan specifics without sitting on hold or waiting for return calls, emails, or mailed information or documents.

3. Review your Medicaid plan details

The most essential part of checking Medicaid therapy coverage is assessing your program’s plan details. You should fully understand what mental health services are covered and available to you, including things like:

• Therapy sessions
• Counseling availability
• Medication and prescriptions

4. Utilize tools and resources provided by your state

Take advantage of tools like plan comparison charts and benefit summaries on your state’s website. These resources are designed to simplify complex details and make them more digestible.

5. Understand service limits and requirements

To get a comprehensive understanding of service limits and requirements, take note of things like caps on the number of sessions and any mandated requirements. You should also find out if prior authorizations are necessary or if you’ll need a primary care referral before seeking treatment.

6. Contact your state’s Medicaid office for personalized assistance

If you’re feeling overwhelmed or still have questions, contact your local Medicaid office directly. It’s a smart way to get the answers you need. You’ll find personalized assistance and support to navigate the program.

Get Affordable Online Mental Health Treatment

Finding the right mental health services can be challenging, especially when cost is a concern — but it’s important to know that options do exist via Medicaid therapy coverage. 

For many people, the perception that therapy is too expensive can be a barrier, but using Medicaid insurance can significantly reduce the cost and make mental health care more accessible. If you’re unsure how to pay for therapy with insurance, you can get one step ahead when you understand that mental health services and therapy covered by Medicaid can differ by state. Now, you can explore the avenues available for cost-effective — or no-cost — treatment for your mental health condition. Note that Medicaid doesn’t currently cover Talkspace online therapy. Check what forms of payment Talkspace accepts at this time.

Online therapy platforms like Talkspace are taking the concept of affordable mental healthcare even further. Not only is the out-of-pocket expense for online therapy often less than traditional therapy, but Talkspace has also partnered with most major health insurance providers to ensure effective mental healthcare is within reach for everyone.

Learn more about how to get therapy by contacting Talkspace today.