What EVERY Therapist Should Know About Insurance



By Barbara Griswold, LMFT

Author, Navigating the Insurance Maze

October 21, 2026

Hello!

Therapists are among the most creative people I know. In every session, we think on our feet, finding new ways to help clients to understand themselves more clearly or to grasp an important message.

 

Yet we are sometimes less creative when thinking about ourselves. We may forget that our abilities extend beyond providing therapy. This narrow view of who we are and what we are able to do may contribute to earlier boredom and burnout, and limit our income.

 

Today’s article explores ways to diversify your practice and your self-view, to revitalize both your well-being and your financial bottom line.

Take care of you,

Barbara

Who Needs More Clients?

 10 Ways to Diversify Your Income - And Save Your Sanity

 

Being a psychotherapist often feels like riding a financial rollercoaster, with its unpredictable ups and downs. One month you’re booked solid; the next, your schedule is a sea of empty slots and cancellations. And if you take a vacation or are ill? That’s just unpaid leave.


I’ve talked in past articles about how to prevent the “income leaks” that come with not charging for missed sessions and from running overtime in sessions.  But can you earn money when you are sitting on a beach with a coconut drink in your hand, or in bed with the flu? Or when your caseload takes that mysterious dip?  


Yes, it is possible. Today I'll talk about 10 income sources that don't rely on client hours, and how these can fill your wallet -- and save your sanity.


My story


I had hit “crispy” status — you know, that "on-the-verge-of-burnout" state. My empathy was non-existent, and my savings account was, too. I felt like a hamster on a wheel, unable to get ahead, and soooo tired. I wanted to earn more money, but I couldn’t face seeing more clients. 


I realized I needed to uncouple my financial survival from the therapy hour. I needed sources of income that didn’t involve the intensity that came with client care. I also wanted some sources of “passive income,” where I could earn money while at home in my pajamas watching “Fixer Upper” (don’t judge me).  


So, I got creative, and started playing around with new projects. I started doing occasional consultations. I offered to give a few free talks. I started writing my book. I started my newsletter and discovered how much I enjoyed writing articles. It all felt fun and fresh, and the variety gave me a much-needed break from the usual grind. 


With each new venture, I was surprised to discover a new part of myself, like flexing an unused muscle I didn't know I had. At first, I wasn't doing it for the money -- that came later. But by mixing things up, I actually started feeling like myself again, full of energy and excitement for my work. In short, I got my mojo back. And the more I let myself think outside the box, the more sources of income I developed.


And I'm not alone...


Heard’s 2026 Financial State of Private Practice Report showed that about 40% of clinicians surveyed reported earning income from at least one source other than therapy. In fact, the average therapist reported bringing in non-therapy income of $8895 annually. That’s a big chunk of change.


Beyond the couch: 10 popular secondary income options


The Heard survey found therapists had a wide variety of side hustles. Here are some of the most common..... (to find out ways to grow your income without seeing more clients, continue reading the article here)

THERAPIST RESOURCES

WEBINAR: "WHAT'S MISSING FROM YOUR CHARTS: WRITING GREAT NOTES"



This recorded webinar is aimed at all therapists, since we all can have charts reviewed by insurance, disability, and licensing boards. Includes 8 note examples, 3 note templates, and telehealth note requirements. For info, click here 

NEW WEBINAR: "WHAT EVERY THERAPIST SHOULD KNOW ABOUT INSURANCE -- EVEN IF YOU WANT NOTHING TO DO WITH IT" 

For all therapists, this newly-updated recorded training will give you all you didn't learn in grad school about dealing with a client's insurance. For info, click here

WEBINAR: "TELEHEALTH LAW & ETHICS: WHAT YOU NEED TO KNOW ABOUT APPS, AI, AND OTHER ADVANCES IN CARE" 


While applicable nationwide, this recorded course meets the mandatory telehealth course requirement for all California MFTs, LCSWs, & LPCCs. We discuss the safe usage of latest technology, including AI, email/texting, seeing clients in another state & HIPAA. For info, click here

PRACTICE FORMS PACKET


Get 24 essential forms. Customizable. Designed to meet legal, ethical, and insurance expectations. For info, click here

WEBINAR: "COUPLES THERAPY: BILLING, DOCUMENTATION,

& ETHICAL DILEMMAS"


Couples therapy involves complex billing, documentation, and ethical issues. This recorded course answers all your questions like when can you ethically bill insurance for couples? Who is your client? Do you need two charts/treatment plans? For more info, click here

WEBINAR: "WHAT OUT-OF-NETWORK THERAPISTS SHOULD KNOW ABOUT BILLING"



This recorded webinar covers what every therapist should know about billing and insurance -- even if you have never signed an insurance plan contract. We'll discuss common errors made by out-of-network providers, sliding scale fees, and helping self-pay clients afford treatment. For info, click here

WEBINAR: 

"AUDITS AND RECORDS REQUESTS: WHAT EVERY THERAPIST SHOULD KNOW"


This recorded webinar is for all therapists, since even out-of-network therapists can have their notes requested by an insurance plan or other agency -- and can be asked to pay back monies already collected. Learn to prevent this. For info, click here

WEBINAR: "HOW TO WRITE A 10-MINUTE TREATMENT PLAN"


Hate writing treatment plans, worry about the ones you write, or don't write them? This recorded training will teach you how to write brief plans that satisfy legal, ethical, and insurance expectations, so you feel confident if you receive a records request. For info, click here.

PROGRESS NOTES TEMPLATE



This progress note template has been designed to pass an audit by the toughest insurance plans or licensing boards. Available in fillable PDF format, Word format, and Pages format. Have confidence in your session notes. For more info, click here

WEBINAR: "THE FIRST SESSION: Juggling Clinical & Administrative Tasks"


This recorded webinar gives tips on juggling all those intake tasks -- building rapport and taking a history, doing a diagnostic assessment, while handling paperwork, payment and insurance issues. For more info, click here

WEBINAR: 

"SHOW ME THE MONEY: Understanding Rates, Raises, and Resigning"


This recorded course shows you how to increase your chances of getting a raise from a health plan, and outlines the practical and clinical steps to take when resigning. For info, click here

WEBINAR: "ARE YOU COMMITTING INSURANCE FRAUD?"



This recorded webinar answers all your questions about contract violations, sliding fees, waiving copayments, and how to avoid common behavior that is actually fraud. For info, click here 

MY BOOK!!!



Navigating the Insurance Maze: The Therapist's Complete Guide to Working With Insurance -- And Whether You Should -- 10th EDITION


Get the digital version only or both the paperback and digital versions

Click here for info. Please buy direct from us - Amazon keeps 55% of profits!


CALIFORNIA LMFTs, LCSWs, LPCCs, and LEPs: You can now get 10 CEs for reading my book, and 2 can count as Legal and Ethical CE credits. Buy my book here and buy the CE test here to get your CEs. You can even take the test if you have already read any edition of my book.

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Barbara Griswold, LMFT

Author, Navigating the Insurance Maze: The Therapist's Complete Guide to Navigating Insurance -- And Whether You Should

theinsurancemaze.com 408-985-0846