Supervisory Billing

What is Supervisory Billing?

When a provisionally licensed mental health provider issues a bill under their supervisor's name, it indicates that the supervisor is taking responsibility for the services provided by the provisionally licensed provider. This billing arrangement is common during the early stages of a mental health professional's career when they are still acquiring their full licensure. It is important for providers to confirm in writing that the insurance companies they are billing allow supervisory billing, Pass-Through Billing, incident-to billing or any other name used by an insurance company that applies to this type of billing.

Here's a general explanation of how mental health billing works for a provisionally licensed provider when the bill is issued under the supervisor's name:

Supervisory Relationship: The provisionally licensed provider, often referred to as an associate, supervisee in social work, LMSW, practicum intern, etc., works under the direct supervision of a fully licensed and experienced mental health professional. The supervisor oversees the associate's clinical work, provides guidance, and ensures that they meet the required standards.

Billing Responsibility: The supervisor takes responsibility for billing and reimbursement on behalf of the provisionally licensed provider. This means that the services provided by the associate are billed under the supervisor's name and credentials.

Insurance Paneling: The supervisor, being a fully licensed provider, is paneled with insurance companies and has the necessary credentials to bill for services. They have established contracts with insurance providers and have the required billing processes in place.

Supervisory Relationship Documentation: The supervisor and the provisionally licensed provider maintain documentation related to the supervisory relationship, including progress notes, supervision logs, and any necessary forms required by the licensing board or regulatory body.

Reimbursement: When services are provided by the provisionally licensed provider, the supervisor submits the bill to the insurance company or the client directly, using their own credentials. Reimbursement for the services is then received by the supervisor.

Compensation Agreement: The supervisor and the provisionally licensed provider typically have a compensation agreement in place, which outlines how the associate will be compensated for their services. The compensation arrangement may involve a set salary, a percentage of the reimbursement received by the supervisor, or other mutually agreed-upon arrangements.

If you have any questions at all about your benefits or your bill, please reach out to us at billing@kindermind.com.