Everything You Need To About Therapists Credentialing Services

Touseef Riaz

June 21, 2022

medical billing credentialing

The terms “credentialing” and “enrollment” are frequently misunderstood. First, let’s get things straight. Enrolling a healthcare professional with an insurance company is referred to as “provider enrolment.” It can also refer to the addition of online remittance advice to computerized health records, as well as a variety of other aspects of the medical billing cycle.

Clinical credentialing is required for healthcare providers to join health plan networks, offer care to covered patients, and be paid for their services in-network. Enrollment criteria vary for each health plan, just as licensure does. Most carriers employ standard forms, whilst others use digital credentialing applications. In the past few years, the Commission for Affordable Quality Healthcare (CAQH) had aided in the standardization of enrollment techniques. There is still a lot of variety between carriers, though. If you want to enter a health plan’s network, pay special attention to the rules. Analyze the services you offer, the amount of money a network will pay you, and the kind of people you want to serve.

therapist credentialing services

Is certification for psychologists and counselors required?

Acquiring insurance panels is particularly important for practitioners in the domains of psychology and therapy, according to our expertise with mental health credentialing. The following are some of the reasons for this:


Because your organization is on the right panel, you should be allowed to charge insurance to patients if you are a counseling specialist working for a big practice hospital. If you quit, you may be surprised to learn that you are not certified, which means you will be unable to accept insurance from new clients.

Obtaining credentialing allows therapists and mental health practitioners to establish their own practice or relocate without compromising accessibility to insurance companies that cover their services. Additionally, because you are not as reliant on your company for insurance billing, you have more negotiating power with your employer.


Previously, psychologists could depend on PPOs (preferred provider options) that are used by their new customers. They made it possible for mental health specialists to avoid being with insurance panels or accepting HMOs. However, times have changed, and consumers now prefer HMOs to PPOs, which are becoming increasingly scarce. Even when a potential client uses PPO, if you are not in their network, you will face penalties and fees. PPOs are no longer financially feasible solutions, but the public’s desire to utilize their insurance for treatment and other services remains unchanged.

Healthcare For All

In the United States, the Affordable Healthcare Act has created a new climate in which anyone (basically) can see a counselor. This is great news for therapists who deal with insurance providers, but it’s bad news for those who work with cash-only patients. The Mental Health Parity Act has had an influence as well because it clearly specifies mental well-being as medical insurance when it was previously voluntary.

The Panels Are Coming To An End

Sometimes other practices compete for similar insurance panels, causing them to close quickly. Insurance providers can manage to stay in-network with everybody because it would result in a loss of revenue due to administrative overhead. Therapists and mental health experts who wish to expand their client range and serve patients that their competitors can’t be certified with should be a top focus. The process of certifying psychologists and mental health practitioners can take a long time. However, the value of the task overcomes the challenges of doing it. Sorting through heaps of documentation, several completed forms, and meeting several credentialing criteria can take a great deal of time and resources, particularly if you do not really know what you’re doing.

What Does Therapist Credentialing Entail?

Medical credentialing service is a lengthy procedure that might take anywhere from a month to six months. When credentialing, the insurance provider will look at the company’s professional record, job experience, and past complaints. The system will also look at licenses, degrees, employment histories, and other information to make sure the practitioner is qualified to offer mental health services.

Prerequisites For Therapist Credentialing

Once submitting the necessary documentation, getting certified as a therapist should take some time. By automating the procedure, healthcare services can achieve efficiency. In the meantime, being an out-of-network supplier, you can submit claims. Here are a few things to keep in mind while you go through the certification process.

  • Research the most popular insurance providers in your field: This is a good place to begin, and you can commence by contacting your hospital and speaking with the person in charge of medical billing.
  • Before you begin, make sure you have the necessary credentials: as an example;

a.) A current full license

b.) Tax identification number

c.) A number assigned by the National Provider Identification System (NPIS) (NPI Number)

d.) accountability Insurance Confirmation

e.) Three expert references are required.

f.) A revised résumé or CV with a minimum of five years of work experience.

g.) A copy of your transcript from graduate school

Finishing the registration process for CAQH: CAQH Proview is a worldwide credentialing gateway used by practically all health insurers to verify the credentials of mental health providers.

You must upload the necessary documents to validate your credentials. After completing the registration process, you will be given a CAQH identifying number, which is required by insurance carriers.

  • Making contact with Employee Assistance Programs
  • Make individual contact with each insurance company to complete their credentialing forms.

The Most Typical Credentialing Blunders Made On The Go

Credentialing is a time-taking and complicated task in and of itself, and performing it badly can result in significant financial damages. Credentialing errors jeopardize the entire enrolling process, and there may be legal ramifications as well. A few instances of what might go wrong during credentialing are outlined below:

1. Inaccuracies In Timing And Scheduling

Because the credentialing procedure entails the verification of large volumes of data, it often takes 90-120 days to finish, based on the circumstances. It’s also possible that gathering and preparing the required documentation for the application will take longer than anticipated. The facility’s staff frequently fails to account for this time lag. It has an equal impact on the healthcare company and the facility.

For the expert, this implies having to wait even longer to begin consulting patients and giving services; the doctor’s precious time is on the line.

For the hospital, until the new practitioner is certified and registered, insurance companies will not cover the costs for his or her treatments, resulting in significant revenue losses. In this regard, a common miscalculation is poor management of the time limit needed for completing the application.

2. Incorrect Data Entry

Look no more for causes to delay or deny credentialing once the application is deficient in accuracy and completeness. The following are the most prevalent mistakes:

Typo errors are data entry errors that result in incorrect or interchanged data, causing confusion. Failure to double-check for incorrect titles, postal or e-mail addresses, id numbers, incorrect NPI numbers, and other errors after data submission.

Information that is missing: The number of typical credentialing errors to prevent while manually compiling the papers includes the absence of vital data or the complete omission of a crucial document owing to a mix-up.

Improper paperwork: Poor document management and structure cause uncertainty and misunderstanding throughout the application process, necessitating resubmission.

3. Errors Made Throughout The Application Procedure

The following are examples of factors that could go wrong in this situation:

If any element of the application is left blank or important supporting documents are not attached, it is generally labeled incomplete and rejected. It is critical to have records demonstrating the medical practitioner’s work history from the time of licensure until the date of verification. Missing records from this time period could be misinterpreted as a gap in the career path.

Incorrect authorization: Requests sometimes lack the required signatures and verification from the parties engaged, all of which are regarded as serious credentialing errors that result in rejection.

Delays: Another circumstance in which the entire procedure gets stalled in the middle is when the authorities’ inquiries about the application are delayed. Almost all of the time, they go unaddressed, and the clinic personnel ignores them due to their hectic daily routine.

Failure to monitor the progress of the application: If the insurance company is particularly busy and receives a large number of file-inflow, it’s possible that the application will get stuck up in the air once it’s submitted. Carelessness often manifests itself as a failure to keep up and monitor the progress of an application, causing the process to drag on even longer. On this front, valuable time and income are being squandered while expecting information from the insurance providers.

4. Mistakes In Compliance

Each state has its own set of credentialing criteria, and failing to meet these standards could become one of the most serious credentialing difficulties in healthcare. It could be a result of:

Personnel ignorance: When the hospital’s staff is assigned to undertake the credentialing task, the simple ignorance of the insurance company’s demands causes everything to fall apart. To get it correct, you’ll need the help of a professional.

In practice, not adhering to the standard regulations: When it comes to credentialing and enrolling, each insurance provider has its own set of requirements. The payment procedure will be delayed if the specifications are not followed.

Not being familiar with the details of the specialty being practiced: Due to a scarcity of expertise in credentialing or prioritizing specialty professions, there are often billing concerns. Aside from the usual documentation, specific documents demonstrating expertise in the specialty practice will be required in the process of credentialing.

Absence of understanding of legal ramifications: The clinical personnel responsible for credentialing might be unaware of the legal ramifications of the request in question. A layperson’s lack of legal vocabulary is acceptable, but it can put the facility in legal jeopardy if things aren’t in order.

5. Errors Made During The Enrollment Process

Billing and payment are inextricably linked to the enrollment process. As a result, any faults linked to this can create revenue cycle fluctuations. Let’s take a look at some of the most typical enrolling blunders these days.

The process of applying did not fulfill the insurance company’s requirements: For adding a new physician to their panel, each insurance company has its own set of rules, deadlines, protocols, and restrictions. A common healthcare credentialing blunder is failing to meet provider standards.

Not being familiar with the local insurance companies: Being authorized to open a practice in a new location necessitates connecting to the region’s channel of insurance companies. It is nearly hard for someone new to the area to join the panel without first learning about the companies.

Not allocating personnel to respond to company inquiries/clarifications: Insurance companies may have a number of questions, clarifications, and main source confirmation prior to enrolment. The billing will be further postponed if the facility’s employees is not allocated with proper tasks to handle these inquiries for you.

Financial loss: Every day that goes by without having that new physician in the healthcare facility registered in the insurance company’s panel costs the facility money, regardless of the reason for the delay.

6. Problems Arising From A Lack Of Digital Assistance

With all of the documentation involved in credentialing, keeping the process structured manually is practically difficult. There are also additional risks, such as:

Not being kept up to date on the process: With new legislation in place, the state’s and private insurance firms’ credentialing processes are constantly being revised. If the records are still stored as paper copies, trying to keep up with frequent re-evaluations can be a real pain.

Challenges with application promptness: Once the procedure is carried out manually, following track of deadlines is difficult. The challenge of re-accessing records when needed is also a problem, not to mention the issue of accuracy.

Failure to update licenses and credentials: Clinic employees may neglect to renew their credentials and licenses as they try to keep up with their busy schedules. During the credentialing process, certificates can sometimes expire before their renewal date, which can go unreported if not automated.

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