Median Therapy Session Rates by CPT Code

As you build your practice and client list, you may struggle with one important question – how much should you charge? While we can’t answer that question for you, we can provide insight into what others in your area charge for specific services (i.e., CPT codes 90791, 90834, or 90837).

In this article, we look at one of the several important factors to consider when setting rates: what others in your area are charging.

This, along with specialty, degree, and years of experience, helps determine what rate is right for your business. So, if you have ever had any uncertainty about what to charge or how much to increase your session rates, keep reading.

Understanding your market

To survive in any industry, you need to charge an amount that enables you to stay in business. That’s Business 101. At the same time, both you and your clients need to feel that your fees are fair. But without knowing what the “market rate” is in your area, it’s difficult to feel confident that your rate is fair.

The market rate, also known as the going rate for a session of therapy, refers to the range of rates which vary by locality. While this information is just one of many data points you should consider when setting your rate, it’s arguably one of the most important.

For some professions, you can get the market rate from a 2-minute web search. Unfortunately, for therapists, it’s troublesome to find the range of rates for colleagues in your area. The reason for this is simple: We live in a society that is close-lipped when it comes to money. Plus, rates tend to be very personal since it associates a value with your service. If your rate is too low, does that mean you offer less value? If your rate is too high, are you not delivering the care that drew you to your practice in the first place?

Changes to the content

The content of this report differs from the 2017 rates report in several ways. Last year’s report included median rates for only one CPT code, 90837. However, after receiving many requests from customers to include other CPT codes, specifically 90791 and 90834, we expanded our scope, and this report includes all three.

Another exciting addition to this year’s report, all the rates now include the 25th and 75th percentile values. Last year, we only included the median (50th percentile) rate. As you will see, providing additional reference points paints a more robust picture of the rate landscape.

U.S. median session rates

Among the three CPT codes we included in this study, the initial intake interview 90791 had the highest median rate at $150. Most insurance payers only reimburse for one of these sessions (without prior authorization), it makes sense that the rate is highest. The national median rates for the other two CPT codes,  90834 (45 minutes of psychotherapy) and 90837 (60 minutes of psychotherapy) were $125 and $130, respectively.

While national median rates are a good overview, if you live in the San Francisco Bay Area, the most expensive U.S. city to live in, the rates at the city-level, included in the full report, will be more reliable and provide a more accurate “market rate.”

How to read the table

The below table includes rates, by state, for the following CPT codes:

• 90791 – Psychiatric/psychological diagnostic interview without medical services (intake interview)
• 90834 – Individual psychotherapy, 45 minutes
• 90837 – Individual psychotherapy, 60 minutes

Table 1. Session rates by state and CPT code: 2018

NOTE: Asterisks indicate small sample size, so rates may be less reliable.

Additional resources to consider

Another way to think about setting your rate is to calculate all your practice expenses and then determine your rate based on this information. For example, your rates may be too low based on the amount of your monthly business expenses (e.g., rent, liability insurance, continuing education, and practice management software). To truly have a successful practice, you need to be profitable.

To this end, we created a downloadable Income Calculator to help you determine a session rate that will cover your monthly expenses.

Additionally, here are some related articles to consider regarding your practice’s overall financial health:

• Tips to Improve the Financial Health of Your Practice (Part 1 of 2)
• Tips to Improve the Financial Health of Your Practice (Part 2 of 2)