Should I Use Insurance for Trauma Therapy? What You Need to Know

If you're thinking about starting therapy, you might be wondering: Should I use my insurance or pay out of pocket? It's a common question—and an important one.

As a trauma therapist, I know how overwhelming this decision can feel. You’re trying to take care of yourself, and now you’re also navigating logistics, finances, and unfamiliar terms. Whether you’re seeking therapy for the first time or looking to reengage, my hope is that this post helps you understand the options, so you can make a decision that feels right for you.

I’ll walk you through the pros and cons of using insurance for therapy, with a warm, honest lens—no pressure either way.

Why Some People Use Insurance for Therapy

✅ It can reduce your cost per session

In many cases, using insurance means paying a lower copay or coinsurance, which can make therapy more financially accessible! Please consider: many plans have a deductible, which means you might be responsible for the full contracted rate (often $100–$160 or more) until that deductible is met.

Sometimes, that rate may be higher than what a private-pay therapist charges—especially if you’re just starting therapy and haven’t met your deductible for the year. It's worth calling your insurance company to understand your mental health benefits clearly!

✅ You may have access to a larger provider list

Insurance plans usually have a list of in-network providers, which can be a helpful place to start. Some also offer access to telehealth platforms that expand your options, especially if you’re looking for something flexible or virtual.

✅ Other services might be covered

If you’re looking for additional support beyond therapy—like psychiatry, group therapy, or medication management—insurance might cover some of those services as well, depending on your plan.

What to Consider Before Using Insurance

Insurance can be a useful tool, and it also comes with limitations that might impact your therapy experience—especially if you're seeking trauma-informed, flexible, or longer-term care.

⚠️ You’ll need a diagnosis

To use insurance, a therapist must provide a mental health diagnosis (like PTSD, generalized anxiety, depression, etc.). That diagnosis becomes part of your medical record. For many people, this is fine—and for others, especially those processing complex trauma or life stressors that don’t fit neatly into a diagnosis, this can feel limiting or misaligned.

⚠️ Insurance can influence your treatment

Insurance companies often require proof that therapy is “medically necessary.” They may place limits on how many sessions are covered or require updates on your progress. This can be challenging for trauma work, which tends to move at a slower, individualized pace. 

⚠️ Less privacy and confidentiality

Using insurance means that certain details—like your diagnosis, session dates, and progress notes—can be shared with the insurance company. While there are privacy protections (like HIPAA), your therapy isn’t quite as private as it would be if you were paying out of pocket.

Is Private Pay Therapy Worth It?

While it’s not the right option for everyone, paying out of pocket can offer a few meaningful benefits:

• You don’t need a formal diagnosis

• Your therapy remains fully confidential

• You and your therapist decide the pace and goals—not your insurance company

• You can access longer sessions or intensive models, if needed

• You can work with specialists who may not be paneled with insurance

Some therapists (myself included) offer therapy that uses insurance and continue to offer private-pay options. This gives you flexibility based on what you’re looking for.

Questions to ask your insurance provider:

• What is my deductible for mental health services?

• What’s my copay or coinsurance?

• Do I need prior authorization?

• Are there session limits?

How to Decide What’s Best for You

There’s no one-size-fits-all answer. Therapy is a personal investment, and your comfort, needs, and goals matter.

Ask yourself:

• What’s my financial comfort level for therapy right now?

• Am I okay with a diagnosis being part of my medical record?

• Is privacy a priority for me?

• Am I looking for short-term symptom relief or long-term healing?

A Final Note from Me

Whether you use insurance or choose to pay out of pocket, you deserve support that feels safe, validating, and effective. I am in the process of working with insurance providers to offer both insurance-based care and private-pay therapy for those who prefer it.

There’s no pressure either way—just a genuine hope that you find what fits. If you ever have questions about what might work best for you, I’m here to help.

You’re allowed to choose the path that supports your healing. And I’ll honor that choice, every step of the way.

How Trauma Therapy with Brea Giancaterino in Denver, Colorado can Help

As a trauma therapist with years of experience supporting individuals impacted by childhood trauma and trauma, I understand the complexities of this journey. 

At my private practice in Denver, I offer a safe, compassionate, nonjudgmental space where you can explore your past, reconnect with yourself, and create lasting change. I’m here to help you find clarity and peace while releasing guilt and shame. Together, we’ll work to unburden the weight of the past and move toward the life you deserve. I am dedicated to building a safe, trusting therapeutic relationship and going at the pace you need to process your trauma.

If you’re ready to take the next step, I’d love to hear from you. Schedule a free 15 minute consultation!

Learn more about EMDR therapy (an impactful and effective trauma therapy) here.