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#56 Why You're Probably Committing Therapy Insurance Fraud (And How to Stop)

Love, Happiness and Success for Therapists

Release Date: 02/19/2025

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Therapists, we need to have a real conversation about insurance fraud.

I know, I know. You’re probably thinking, "Lisa, I would NEVER do that!" But hear me out… many private practice therapists are accidentally stepping over the ethical line when billing insurance. And it’s way more common than we like to admit.

In this episode, I’m peeling back the curtain on the unspoken truth about therapist insurance fraud—why it happens, the systemic pressures that push therapists into ethical gray areas, and most importantly, what you can do to stay on the right side of it (without losing clients or revenue).

Timestamps:

00:00 - The Hidden Issue of Insurance Fraud in Therapy

02:29 - The Dilemma of Non-Clinical Clients

05:35 - The Problem with Fudging Diagnoses

06:25 - The Impact on Couples Therapy

15:46 - The Ethical Stand Against Pathologizing

17:58 - The Solution: Coaching Psychology

22:24 - The Benefits of Becoming a Board Certified Coach

26:47 - Free Resources for Therapists

If this conversation has you rethinking how you structure your practice, I’m here to help with a solution! Many therapists feel stuck in the insurance model, wrestling with ethical gray areas just to make things work. But here’s the truth: there’s a better way. 

Therapists who implement a coaching model into their practice not only avoid the ethical dilemma of insurance fraud, but also end up working with highly-motivated, growth-oriented clients and thriving personally, professionally, and financially. It’s a huge win all around. 

If you’re a therapist who’s curious about coaching and how it can transform your practice, check out my free Masterclass: The Therapist’s Guide to Coaching. It’s designed to help you confidently integrate coaching into your work, attract and serve motivated clients (who don’t need a mental health diagnosis), and run a profitable, sustainable practice without being tied to restrictive insurance policies. If you want to build a practice that aligns with your values, this is for you. 

Also, check out my other LHS For Therapists podcast episodes for more therapist-focused professional development content. Every week I share my insights, research, and interviews with experts in our field so you can thrive as a therapist. You can also connect with me on LinkedIn! It’s a great way to build community and support for yourself as a therapist. I'd love to hear from you!

Xoxo

Dr. Lisa Marie Bobby

www.growingself.com

P.S. If this episode resonated with you, please share it with a fellow therapist—this is a conversation we all need to be having.