Financial Planning for Mental Health Treatment: A Guide for Families
Mental health has as big an impact on well-being as physical health. This means that timely mental health treatment is a necessity for those who struggle with their emotional well-being.
Some interesting statistics show us that more than 40% of Americans in need of mental health care don’t get it because they can’t afford it.¹ For some, this is because they haven’t the right health insurance options in place, and for others, it’s because their insurance doesn’t cover enough of the costs.
Either way, planning ahead for mental health care might be the best way to ensure that paying for therapy doesn’t become a financial burden. Mental health treatment financing can be tricky to understand. For instance, insurance policies may use technical jargon and treatment options may confuse you if you’re not familiar with the different therapies on offer or what it is that you need.
Understanding the various Medicare and mental health coverage options, whether tax deductions for therapy costs are possible, and what out-of-pocket therapy expenses mean isn’t always straightforward. However, Mission Connection is available to help you better understand coverage options when it comes to treatment.
This guide can also help by discussing:
- How to understand the financial impacts of mental health care
- Creating a comprehensive financial plan
- Therapy options and their costs
- Different insurance and payment options
- Budgeting and debt management strategies for mental health
- When to seek guidance on financial planning for mental health
Understanding the Financial Impacts of Mental Health Care
Even though mental health care may be essential, it’s not always affordable. The financial impact of treatment can be detrimental to people, not just affecting their ability to work, but also impacting a household’s overall finances.
For those who require residential or inpatient treatment, the inability to work can even lead to reduced income. Even those who require outpatient care and remain in employment may find their productivity suffering or that they have to take extra days off work to cope. It’s, therefore, clear that when faced with mental health challenges, the expense of treatment could create financial difficulties on a day-to-day basis, which, in turn, can worsen mental health and create a negative cycle.
While certain laws ensure that people can take time off for mental health care, these laws don’t apply to covering the cost of mental health services. As a result, days off for treatment may be unpaid – often contributing to stress and mental health symptoms.
For these reasons, mental health savings plans often come in handy if you feel you’ll need ongoing care or care in the future. A mental health professional can talk you through what these plans are and how to go about setting one up.
Creating a Comprehensive Financial Plan
Before you can register for affordable mental health care, you may need to consider how you’ll pay for it. For example, if you have health insurance coverage for mental health, you could check what mental health issues your plan covers.
Even if your plan does cover mental health treatment for your condition, you may find that there are unexpected limitations. However, certain tools, like a Health Savings Account (HSA) allow you to prepare for any limitations by putting pre-taxed money aside if you have a qualifying plan.
Additionally, some insurance providers offer sliding scale fees or EAPs (Employee Assistance Programs) that provide free short-term therapy.
Therefore, as may be clear, having a comprehensive financial plan for paying for treatment is a good starting point for looking after your mental health. The following are ways of creating a comprehensive financial plan:
Assessing Your Income and Expenses
Budgeting is at the core of any financial plan. You’ll need to have a clear overview of your current financial situation before adding the extra stress of treatment costs.
Take the time to draw up a budget that details your income and expenses. For instance, you may need to consider all your usual fixed expenses like rent, utilities, subscriptions, and groceries. Using your bank statement to assess all your regular deductions is a good starting point.
Additionally, if you’ll be taking unpaid leave to go for treatment, remember to factor this reduced income into your plan. Once you have a full list of your income and expenses, you can see how much cash flow you have left to use for mental health treatment.
Developing a Spending Plan
Once you’ve taken a clear look at your income and monthly costs, you can see how mental health care fits into the overall picture. This includes considering both predictable expenses like weekly therapy or a regular prescription and possible cost fluctuations, like needing an extra session during a difficult week.
Some people set aside a fixed amount each month for care, even if they’re not currently using services. This way, the funds are there when support is needed.
If you’re covered by a health plan that allows it, a Health Savings Account (HSA) or Flexible Spending Account (FSA) can be useful tools for creating your spending plan. These accounts let you use pre-tax dollars for qualified health expenses, including therapy and medication.² Even small, regular contributions to these accounts can make a difference over time.
Your spending plan doesn’t need to be complicated. What matters is that it reflects what’s realistic for your household and includes space for the care you or your loved one may need. A mental health professional can also discuss the cost of certain therapies with you, allowing you to budget for your specific mental health requirements.
Exploring Therapy Options and Costs
With so many therapy options available, it’s a good idea to investigate what avenue is best suited to you and what to expect in terms of the cost of mental health services. A recent survey uncovered that 27% of people who need affordable mental health care don’t know where to get it.³ Therefore, talking to a mental health professional can help you better understand how to access therapy and what to expect from costs.
Therapy sessions can range from $80 to $200 depending on the treatment plan and location. The level of care will also impact the cost of mental health services available to you.
The types of therapy typically available for mental health treatment include:
- Inpatient therapy
- Outpatient therapy
- Intensive outpatient programs
- Virtual intensive outpatient programs
Each of these treatments comes with different cost structures.
When considering the various treatment facilities, remember to check if your health insurance is accepted by the facilities you have in mind.
Telehealth Therapy vs. In-Person Sessions
In-person therapy requires people to physically attend one-on-one or group sessions on a regular basis. This could be once a week or several times a week depending on the care plan.
While many prefer in-person therapy, others prefer a different approach. Life gets busy and, as such, it can sometimes be difficult to attend regular in-person sessions. This is where telehealth therapy can be useful. A recent survey uncovered that around 41% of adults in the US prefer telehealth therapy for mental health appointments.⁴
Online or telephonic therapy sessions make mental health treatment more accessible and can also reduce the total cost, especially with certain providers and plans.
Outpatient vs. Inpatient Support
Outpatient therapy is ideal for people seeking support while maintaining daily responsibilities. This form of treatment includes individual, group, and family therapy sessions, making use of evidence-based approaches like Cognitive Behavioral Therapy (CBT) and Dialectical Behavior Therapy (DBT). Inpatient therapy on the other hand is better suited to people who need 24/7 supervision and care.
Not every situation needs the highest level of care. For a lot of people, seeing a therapist once a week or checking in through a group session is enough to make a real difference.
But sometimes, this is not quite enough.
If things get more intense—whether through a mental health crisis or just a stretch that feels harder than usual, more support might be needed. Inpatient care means staying at a facility with 24-hour help. It’s full-time, structured, and often used when safety or stabilization is the priority.
Partial hospitalization and intensive outpatient options are also possible. These options provide more of a middle ground, giving access to more therapy hours and structure, but still allowing you to go home each night. These options often cost less than inpatient care, and depending on your insurance coverage for mental health, they might be partly or fully covered.
If you’re not sure where to start, talking to an advisor at Mission Connection is a good first step.
Sliding Scale Therapy Options
The prices advertised online for therapy are not always the prices you’ll pay. If the cost of care makes therapy too expensive for you, rest assured that there are providers that offer sliding scale fees. These are rates that are adjusted based on your income or current financial situation. Financial assistance for therapy is available.
Financial assistance isn’t just limited to private therapists. Community health clinics, nonprofit counseling centers, and university programs often have reduced-cost sessions. Some even offer them for free, especially for individuals or families going through a tough patch.
This type of assistance isn’t always advertised front and center, so asking directly can help. A quick email or call to a provider’s office might open up options you didn’t know were available.
If you’re willing to look beyond traditional private practice, there are usually more resources out there than it first seems. And while it might take a little time to find the right fit, getting affordable care is possible and worth it.
Understanding Insurance and Payment Options
Insurance can be a major asset in reducing therapy costs, but it also comes with its own challenges. Knowing how to navigate your benefits helps avoid unexpected bills or gaps in coverage.
Navigating Insurance for Mental Health Services
Start by reviewing your insurance policy’s mental health coverage. Look for answers to these questions:
- Does it include therapy, psychiatry, or inpatient services?
- Are there limits on session numbers?
- What providers are in-network?
Don’t hesitate to call your insurance company directly and ask specific questions. If you’re using Medicare, check what’s covered under Medicare and mental health services. Some plans may only cover specific types of therapy or require prior authorization for specialty care.
Out-of-Pocket Payment Considerations
Even with insurance, you may still face deductibles, co-pays, or uncovered services. Understanding these out-of-pocket therapy expenses helps you plan ahead. It may also be worth exploring whether your therapy costs qualify for tax deductions⁵ or if you can contribute to an HSA or flexible spending account (FSA) to reduce taxable income.
If you’re uninsured or underinsured, some families turn to crowdfunding mental health treatment or community-based grants for support.⁴ While not a long-term solution, they can help cover the gap during periods of high need.
Budgeting and Debt Management Strategies for Mental Health
When you’re trying to cover the cost of mental health care, having the rest of your budget in decent shape can make all the difference. It’s not always easy, but there are a few grounded steps that can help make space for care without sending your finances off track.
Start by carving out a small emergency fund or setting up a health savings account, if you’re eligible. Having even a modest cushion for medical costs can ease the pressure when a therapy bill or medication refill is due.
It’s also worth keeping an eye on where your money goes each month. Budgeting apps can help track spending, including anything related to therapy or treatment, and show you where you might be able to make adjustments. You don’t need to overhaul your lifestyle—sometimes just pausing a few non-essential subscriptions or reducing takeout can create breathing room for what matters more.
If you’re paying for sessions out of pocket, ask your provider if they offer payment plans, sliding-scale rates, or flexibility during tougher financial months. Many therapists are willing to work with clients to keep care accessible.
If you’re in the process of choosing a new insurance plan, take the time to look at what’s included for mental health. Plans that offer in-network therapy providers allow for at least 8 to 12 sessions per year and include telehealth options which can save you a lot down the line. Additionally, some employer-based plans provide access to an Employee Assistance Program (EAP), which may cover a few free counseling sessions each year along with some employer mental health benefits.
These small, intentional steps can go a long way. You don’t have to choose between your financial health and mental health. There are ways to support both.
Seeking Guidance on Financial Planning for Mental Health
The overall cost of mental health care shouldn’t deter people from getting the care they need. At Mission Connection, we help people understand the financial implications of their mental health treatments and can assist you with planning ahead.
Whether you’re looking for affordable mental health care, trying to navigate insurance coverage, or exploring sliding scale therapy options, our team is here to help.
Call us today to take the next step toward affordable mental health treatment that supports your family’s well-being.
References
- National Institute of Mental Health. (2021). Barriers to mental illness treatment in the United States [Chart]. In Statista. Retrieved April 11, 2025, from https://www.statista.com/chart/31001/barriers-to-mental-illness-treatment-in-the-united-states/
- Lublóy, Á. (2020). Medical crowdfunding in a healthcare system with universal coverage: An exploratory study. BMC Public Health, 20, 1672. https://bmcpublichealth.biomedcentral.com/articles/10.1186/s12889-020-09693-3
- Statista Charts [@StatistaCharts]. (2023, October 11). Barriers to mental illness treatment in the United States https://x.com/StatistaCharts/status/1712011580412506464
- Statista. (2023). Telemedicine preference in the U.S. 2023, by type of care. https://www.statista.com/statistics/1372599/telemedicine-preference-in-the-us-by-type-of-care/
- TurboTax. (2025, February 19). Are medical expenses tax deductible? Intuit. https://turbotax.intuit.com/tax-tips/health-care/can-i-claim-medical-expenses-on-my-taxes/L1htkVqq9
