Psychology Billing and Psychologist Credentialing

Medtransic bills insurance and handles credentialing for psychologists, from solo practices to groups. We bill therapy sessions and psychological testing, and we get testing approved before the work starts when the plan requires it. We work inside SimplePractice, TherapyNotes and the other systems psychologists use. Billing is 4-8% of what we collect for you. Credentialing is $150 per application, per provider, and usually takes 60 to 90 days with each payer. There is no long-term contract.

Last reviewed 2026-10-03.

Where psychology practices lose money

Therapy sessions are the steady part. Testing is where most of the money, and most of the denials, sit.

  1. Testing done before it was approved

    Many commercial plans require prior authorization for psychological testing. The plan approves specific services and a set number of units. Testing that starts without approval, or goes past the approved units, is usually not paid.

  2. Testing billed in the wrong parts

    Testing is billed in two parts. Test administration and scoring is billed in 30-minute units. Evaluation services, which cover interpreting results, combining the data, writing the report and giving feedback, are billed by the hour. Time recorded in the wrong part is time you do not get paid for.

  3. Interns and postdocs billed as if they were licensed

    Insurers generally credential only fully licensed psychologists. Medicare does not pay for services by interns or postdoctoral fellows, even under supervision. Some commercial plans and state Medicaid programs allow supervised billing, so the rule has to be checked payer by payer.

  4. Out-of-network clients with no paperwork to claim

    Clients who pay out of pocket often want a superbill to claim from their insurer. When it is missing details the insurer needs, the client cannot get reimbursed and the practice hears about it.

What we run, and what stays with you

What we run

What stays with you

Your EHR shows what you billed. Your portal shows what we are doing about it.

Your EHR or practice management system runs your practice, but it does not show you our work. The Medtransic HIPAA Compliant Portal does: every claim and its current stage, the denials we are working, your A/R by age, each payer application and its in-network date, and the documents we still need from you. It is the same record our team works from, and it comes with every client account.

Did that claim get paid?

Every claim with its stage and amount, the denials we're working, and your receivables by age.

Where is my application with Aetna?

Each payer application shows its stage, its history, and the date you can start seeing that payer's patients.

What do you still need from me?

One list of the documents we're waiting on. Upload once, and it reaches every payer that asked for it.

It works in any browser, on your desk or your phone. iPhone and Android apps are coming soon. See the client portal.

Medicare rules psychologists should know in 2026

These are current as of October 2026.

Full rate only with assignment. Licensed clinical psychologists can enroll in Medicare and bill under their own number. Medicare pays them the full fee schedule rate only if they accept assignment.

Offer to coordinate with the primary care doctor. Unless the patient's primary care or attending physician made the referral, Medicare expects the psychologist to tell the patient they would like to consult that doctor, and to document the patient's answer.

Telehealth services made permanent. In the 2026 fee schedule, Medicare permanently allowed psychologists to bill services that had only been on the telehealth list on a provisional basis.

Testing under general supervision. Diagnostic psychological testing can be furnished incident to a clinical psychologist's services under general supervision.

Prescribing psychologists. As of May 2026, eight states grant prescriptive authority to qualified psychologists: Colorado, Idaho, Illinois, Iowa, Louisiana, New Mexico, Utah and Vermont.

Psychologist credentialing, step by step

Psychologists go through the same payer process as other clinicians, with a few points specific to the profession.

  1. License and NPI in order

    A license at the independent level in the state where clients are located, and your NPI. If your practice is a corporation, LLC or group, it usually needs its own organization NPI as well.

  2. CAQH profile complete and attested

    Most commercial payers read your profile in the CAQH Provider Data Portal (formerly CAQH ProView). It is free for clinicians. We complete it, upload your documents and re-attest every 120 days.

  3. Medicare, if you take it

    Clinical psychologists enroll online in PECOS, Medicare's enrollment system, separately from commercial payers. We file it alongside your commercial applications.

  4. Applications filed and tracked

    We submit each application, follow up until approval, and record each effective date in your client portal.

Telehealth across state lines: PSYPACT lets licensed psychologists offer telepsychology to clients in other member states. You need PSYPACT authorization, called the Authority to Practice Interjurisdictional Telepsychology (APIT), and you must be physically in your home state while you practice. More than 40 states have joined, plus DC; Alaska and Iowa passed laws in 2026, and Iowa's takes effect July 1, 2027. Check the PSYPACT map for the states currently in effect. Payers still need to credential you.

Payer notes for psychology

Testing approvals are by service and unit

Plans approve testing by service and number of units. Bill only what was approved, or ask for more before testing goes over.

Behavioral health networks run separately

Many plans hand mental health to a separate network, so the company on the card is not always the one that credentials you or pays the claim. We check before the first appointment.

Medicaid varies by plan

Medicaid coverage for testing and therapy, and who can enroll, varies by state and by managed care plan. We check the plan, not just the state.

When we are not the right fit

If your practice is entirely self-pay and you do not want to join insurance panels, you may only need a superbill process, not a billing company.

If your testing practice is mostly forensic or school-funded work outside health insurance, most of it will not run through insurance billing at all.

Questions psychology practices ask us

How long does psychologist credentialing take?

In our experience it usually takes 60 to 90 days with each payer. Payers quote about 45 to 90 days after they receive a complete application, which is why we start with a complete CAQH profile.

How much does psychologist credentialing cost?

Medtransic charges $150 per application, per provider, with no long-term contract. The CAQH profile itself is free for clinicians.

Do you bill psychological testing?

Yes. We get testing approved first where the plan requires it, track the approved units, and bill administration and evaluation as the two separate parts payers expect.

Can you credential a postdoctoral fellow?

Insurers generally credential only fully licensed psychologists, and Medicare does not pay for services by interns or postdocs even under supervision. Some commercial plans and Medicaid programs allow supervised billing, so we check payer by payer.

How much does psychology billing cost?

Billing is 4-8% of what we collect for you. The revenue audit before you sign is free.

Sources

Outside facts on this page were checked against these sources on the date shown.

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