Why don't psychiatrists take Medicaid?

Asked by: Dr. Chanel Hickle  |  Last update: August 28, 2025
Score: 4.3/5 (71 votes)

While reimbursement rates for office-based psychiatric treatment are similar to those for office-based medical evaluation and management, the desire to provide psychotherapy may be a reason why many psychiatrists do not accept insurance.

Why do psychiatrists not take Medicaid?

Most providers do not accept Medicaid and Medicare because they pay less and it takes more work to get the payment than with private insurance.

Can I get a psychiatrist with Medicaid?

Medicaid tends to pay doctors more poorly than other insurances, so even fewer psychiatrists accept it. So, while Medicaid does cover psychiatric services, it can still often be hard to find a psychiatrist, even harder than others.

Why do most doctors not accept Medicaid?

One reason is that reimbursement rates for Medicaid are lower than for Medicare or commercial insurance. Another (often overlooked) factor, however, is physician's risk of payment denials and the administrative hassle they face trying to get reimbursed by Medicaid.

Why do psychiatrists not take Medicare?

Why? Because they don't need to do so in order to have a full practice. There is a shortage of psychiatrists in the United States and accepting insurance entails a lot of unreimbursed time and expense, as well as irritation and frustration.

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19 related questions found

Why are psychiatrists not covered by insurance?

While reimbursement rates for office-based psychiatric treatment are similar to those for office-based medical evaluation and management, the desire to provide psychotherapy may be a reason why many psychiatrists do not accept insurance.

Is it illegal for doctors to refuse Medicare patients?

Physicians are not required to participate in Medicare, though the vast majority of them choose to do so.

Why do people disagree with Medicaid?

Liberals view Medicaid as diverting the Nation's attention from the need for national health insurance. They are troubled by the fact that the program covers less than one-half the Nation's poor and that there are substantial variations in State Medicaid programs.

What does Medicaid not cover?

Though Medicaid covers a wide range of services, there are limitations on certain types of care, such as infertility treatments, elective abortions, and some types of alternative medicine. For example, the federal government lists family planning as a mandatory service benefit, but states interpret this differently.

How many mental health sessions does Medicaid cover?

The number of therapy sessions Medicaid covers varies by state and individual plan. Some states may offer unlimited sessions, while others may have limits. For example: Some states cover up to 30 sessions per year.

What if I can't afford a psychiatrist?

Local Social Services: Ask your local department of public health to connect you with community mental health clinics near you. Here you may be able to locate government-based centers that offer psychiatry for free or low-cost.

Will Medicaid pay for anxiety?

Yes, Medicaid health insurance plans cover behavioral health services and mental health treatment for therapy and other mental health services.

Will Medicaid pay for a psychiatrist?

Yes. All Medicaid programs cover some mental health and substance use disorder services. The specific services covered will depend on your state. The Mental Health Parity and Addiction Equity Act of 2008 required healthcare plans to provide mental health benefits that are equal to their medical and surgical coverage.

What mental disabilities qualify for Medicaid?

Medicaid beneficiaries enrolled through disability pathways include those with physical conditions (such as quadriplegia, traumatic brain injuries); intellectual or developmental disabilities (for example, cerebral palsy, autism, Down syndrome); and serious behavioral disorders or mental illness (such as schizophrenia ...

What insurance do you need for a psychiatrist?

California law provides added security by requiring every health plan in the state to cover certain mental health conditions, including the following: Major depressive disorders. Autism or pervasive developmental disorder. Bipolar disorder.

What are the downsides of Medicaid?

Disadvantages of Medicaid

One of the primary reasons for this is that Medicaid reimbursements are lower than those of commercial insurers for most procedures and treatments.

What is excluded from Medicaid?

Mandatory exclusions: OIG is required by law to exclude from participation in all Federal health care programs individuals and entities convicted of the following types of criminal offenses: Medicare or Medicaid fraud, as well as any other offenses related to the delivery of items or services under Medicare, Medicaid, ...

Is everything free with Medicaid?

States can impose copayments, coinsurance, deductibles, and other similar charges on most Medicaid-covered benefits, both inpatient and outpatient services, and the amounts that can be charged vary with income. All out of pocket charges are based on the individual state's payment for that service.

Can you be too poor for Medicaid?

Eligibility for children was extended to at least 133% of the federal poverty level (FPL) in every state (most states cover children to higher income levels), and states were given the option to extend eligibility to adults with income at or below 133% of the FPL.

Why is Medicaid not accepted?

One likely reason fewer doctors accept Medicaid patients is that those claims are paid at a lower rate than other insurance. More providers would be interested in Medicaid if the program's reimbursements were similar to Medicare payments, according to the report.

Which 10 states have not expanded Medicaid?

The Affordable Care Act, also known as Obamacare, was enacted in 2010, but 10 states have not expanded Medicaid, the federal-state program that provides health care for low-income people. They are Alabama, Florida, Georgia, Kansas, Mississippi, South Carolina, Tennessee, Texas, Wisconsin and Wyoming.

Why do psychiatrists opt out of Medicare?

Psychiatrists with characteristics that may signal higher quality to patients (for example, greater experience or more prestigious training) may be more likely to opt out because Medicare patients would be more willing to pay higher fees for those psychiatrists.

Do most doctors accept Medicaid?

This gap was much larger in some states than others. For example, in New Jersey, Florida, Louisiana, and California, physicians were more than 30 percentage-points less likely to accept new patients with Medicaid coverage than those with private insurance.

Can doctors refuse Medicaid patients?

When uncovered costs become too great, physicians are ethically justified in refusing to accept Medicaid patients, according to Sade. “If they do accept such patients, however, they are ethically obligated to offer them the same care as they do for all of their patients,” Sade says.