Mental health billing services typically cost between 2.49%–8% of monthly collections or $2–$8 per claim. Flat monthly rates range from $500 to over $3,000, depending on volume, CPT codes, and payer mix.
However, the real cost goes beyond these numbers. Denied claims, manual resubmissions, and hidden fees can drain both revenue and staff time.
In this guide, we will break down:
- The 3 billing models: Percentage-based, per-claim, and flat-rate.
- Key cost drivers: Payer mix, EHR integration, and CPT complexity.
- Vendor red flags to avoid surprise charges and delays.
Whether you manage a solo practice or a multi-provider clinic, selecting the right billing model helps protect revenue and minimize administrative risk. The next section breaks down each model with real examples.
Denied claims, manual resubmissions, and hidden fees can drain both revenue and staff time. That’s why many providers turn to mental health billing services that offer transparent, full-cycle revenue management without hidden fees.
Table of Contents
What Are the 3 Billing Pricing Models?
Choosing the right billing model can significantly impact the efficiency and profitability of your practice’s revenue cycle. The three most common pricing structures are:
1. Percentage of Collections (Performance-Based)
How does it work? Billing companies usually charge a percentage of what they collect (not what’s billed), which means their fees are pretty much tied to your revenue success.
| Detail | Description |
|---|---|
| Typical Range | 2.49% to 8% of collections |
| Best For | Practices with variable claim volumes or high denial risks |
| Includes | Full RCM: coding, claims submission, AR follow-up, denial recovery |
| Key Risk | Double-check inclusions (e.g., telehealth modifiers, ABA therapy codes) |
Why It Works: It provides billing companies with an incentive to maximize reimbursements.
✅ Example: Example: MediBill RCM’s mental health billing services a flat 3.9% model that includes claim submission, denial recovery, ABA billing, and telehealth modifiers, backed by a 98.7% clean claim rate.
2. Per-Claim Pricing (Fixed Fee per Submission)
How It Works: You pay a flat rate for each claim submitted, but be aware of potential add-ons.
| Detail | Description |
|---|---|
| Typical Range | $2–$8 per claim |
| Best For | Small practices with predictable, low-volume claims |
| Hidden Costs | Resubmissions ($5–$15/claim), modifier fees (e.g., 95/GT), EHR integrations |
⚠ Several services charge separately for denial follow-ups, telehealth billing (modifier 95/GT), and EHR syncing.
3. Flat Monthly Fee (Stable but Inflexible)
How It Works: A set monthly fee, regardless of claim volume or collections.
| Model | Flat Monthly Fee |
|---|---|
| Range | $500–$3,000+ |
| Best For | Large practices with stable claim volume |
| Drawbacks | Doesn’t scale with revenue fluctuations |
⚠ Flat fee models often exclude ABA therapy codes (97153–97156), telehealth rules, or Medicaid-specific billing requirements.
What Factors Affect the Cost of Mental Health Billing Services?
Costs vary based on the complexity and volume of your billing. The five dominant cost variables:
| Factor | Impact on Cost | Example |
|---|---|---|
| Service Types | Higher complexity increases billing time | ABA codes (97153–97156) cost more than 90837 |
| EHR Integration | Built-in integrations reduce manual entry | TherapyNotes sync vs. manual claims |
| Payer Mix | Public plans often require more follow-ups | Medicaid pays less per unit and delays payment |
| Denial Rate | Higher denials lead to more resubmission labor | A 12% denial rate increases billing workload |
| Credentialing Needs | Adds upfront effort for billing providers | Medicare, Tricare, and BCBS enrollments included or billed separately |
Real Cost Examples by Practice Type
| Practice Type | Avg. Monthly Claims | Avg. Revenue | Estimated Cost (3.9%) |
|---|---|---|---|
| Solo Therapist | 120 | $18,000 | Approximately $702 |
| Group Practice (5 providers) | 500 | $65,000 | Approximately $2,535 |
| ABA Clinic (10 RBTs + 2 BCBAs) | 800 | $96,000 | Approximately $3,744 |
Note: Actual billing costs may vary depending on practice-specific factors such as payer mix, claim complexity, and billing service agreements.
In-House vs. Outsourced Mental Health Billing
| Factor | In-House | MediBill RCM LLC |
|---|---|---|
| Staff Cost | $45,000–$65,000/year | Included |
| Software | $300–$1,200/month | Included |
| Denial Recovery | Manual, time-consuming | Included, automated |
| Credentialing | Often delayed | Managed by experts |
| EHR Sync | Manual entry risk | Direct integration |
✅ Outsourcing to MediBill RCM LLC reduces billing-related overhead by 20%–40%, increases collection speed, and improves accuracy.
For a full comparison of in-house vs. outsourced billing, read our analysis: When Does Outsourcing Mental Health Billing Make Sense?
What Mental Health Codes Does Billing Cover?
Billing services should support all mental and behavioral health CPT codes, including:
| CPT Code | Description |
|---|---|
| 90837 | 60-minute psychotherapy |
| 90834 | 45-minute psychotherapy |
| 90832 | 30-minute psychotherapy |
| 90791 | Psychiatric diagnostic evaluation |
| 90792 | Psychiatric diagnostic evaluation with medical services |
| 90853 | Group therapy session |
| 97153–97156 | ABA therapy codes (Applied Behavior Analysis) |
| 99354 | Extended sessions add-on (prolonged service) |
| 90839/90840 | Crisis psychotherapy and add-on |
| 90833, 90836 | Psychotherapy add-ons with medication management |
MediBill RCM LLC processes all of the above codes with appropriate modifiers (e.g., 95, GT) for telehealth services, following state-specific guidelines and payer requirements.
How to Avoid Hidden Billing Fees?
Ask these questions before committing to a vendor:
- Are denial follow-ups included?
- Is EHR integration with TherapyNotes or Kareo an extra cost?
- Do you charge for claim resubmissions?
- Are credentialing applications covered?
- What codes and modifiers are supported?
- Are ABA and IOP codes included in pricing?
Many billing vendors advertise low base rates but charge extra for common services.
✅ MediBill RCM LLC’s 3.9% includes everything, no per-claim fees, resubmission costs, or add-ons.
Asking the right questions upfront ensures cost transparency, prevents billing surprises, and protects your profit margins.
Why do Providers Choose MediBill RCM LLC?
Mental health providers nationwide trust MediBill RCM LLC for a reason:
✔ Flat 3.9% of collections, no hidden costs
✔ Specialized in 90837, 90791, ABA, IOP
✔ Integrated with major EHRs (TherapyNotes, Kareo, SimplePractice)
✔ Credentialing included
✔ Denial recovery is handled automatically
✔ Real Certified Mental Health Billing Experts (e.g., HIPAA-compliant billing specialists certified in behavioral health coding)
Our clients report a 20–40% increase in revenue after switching to our full-service solution.
These services are standard in our full-service behavioral health billing solutions, covering everything from TherapyNotes and Kareo integration to Medicare credentialing and CPT-specific compliance.
FAQs on Cost of Mental Health Billing Services
What is the average cost of mental health billing services?
Most providers pay between 2.49% and 8% of collections, or $2 to $8 per claim, depending on the pricing model and the services included.
Why do most practices prefer percentage-based billing?
It aligns with revenue, typically includes full-service RCM, and avoids surprise charges. Per-claim pricing often adds fees for denials, modifiers, and resubmissions.
Is a flat monthly billing fee a good option?
Flat fees only benefit high-volume clinics. For most practices, percentage-based pricing is more cost-efficient and flexible.
Are credentialing services included in billing fees?
Most billing companies charge an additional fee for credentialing. MediBill RCM LLC includes it in the standard rate at 3.9%, with no separate application fees.
Does the billing service cover ABA and telehealth codes?
MediBill RCM LLC includes ABA billing (97153–97156) and telehealth modifiers (95, GT) in its base rate. Many competitors charge extra for these services.
Want to Know Your Exact Cost?
MediBill RCM LLC offers a free, no-obligation billing audit. We will calculate your potential savings and demonstrate how we optimize your reimbursements, all at a flat rate of 3.9%.
Disclaimer: While MediBill RCM LLC offers a flat 3.9% rate for most practices, actual pricing may vary depending on practice size, regional billing requirements, or the complexity of exceptional claims. Custom quotes are provided during the free audit.
📞 Schedule Your Free Audit Now → See How Much You Can Save
MediBill RCM LLC has been delivering results-driven mental health billing services for years. Trusted by solo therapists and multi-location behavioral health clinics across the U.S.
