‍This article is co-authored by Headway

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Credentialing is the process of joining an insurance plan’s network so you can serve clients covered by their health plans. 

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Also called “paneling” or becoming “in-network,” credentialing has the potential to make your services accessible to more clients and help you fill out your caseload.

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Here are the steps you need to take to get your private practice credentialed, from choosing insurance plans to understanding timelines.

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You can save time by joining the network of providers at Headway, where a practice consultant can help you quickly become credentialed with every available plan, in every state you practice, all at once.

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Key takeaways

• Credentialing (also called paneling) is how you join an insurer’s network so you can bill your clients’ health plans in-network.
• 74.6% of therapists in Heard’s 2026 survey accept insurance, and the median reimbursement was $107 per session.
• Get your NPI first, then create and attest your free CAQH profile before you start applying to insurers.
• Commercial insurers often take 90 to 120 days to credential you. Medicare usually processes clean online applications much faster.
• Since January 1, 2024, marriage and family therapists and mental health counselors (including LPCs) can enroll in Medicare and bill it directly.

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Quick review: Why is insurance credentialing important for therapists?

Before an insurer can bring you in network—and send its members to your practice—it needs to confirm you’re licensed and trained to provide care.

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But it’s a two-way street. During the process, you get a chance to review how the insurance plan does business, including their fee schedule. 

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The schedule tells you how much you’ll be reimbursed by the insurer for the services you provide insured clients. 

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So getting credentialed is a chance for both you and the insurer to learn about one another, and decide whether a professional relationship would be mutually beneficial.

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It’s also a big decision for most practices. According to Heard’s 2026 Financial State of Private Practice Report, 74.6% of the therapists we surveyed accept insurance. The median insurance reimbursement they reported was $107 per session, compared with a median cash-pay fee of $150 for an individual session.

Choose insurance providers

Each insurance company is different. When considering which company you’d like to be credentialed with, check out online reviews by in-network providers or interview other therapists whom you know to have been credentialed with them.

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As you do, ask:

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• How quickly does the insurer pay out providers after billing?
• Are they reliable? Have providers faced any difficulty being paid?
• What does their fee schedule look like? For benchmarks on what therapists are reimbursed, see Heard’s 2026 Financial State of Private Practice Report.
• What is the process for clients with coverage being referred to in-network therapists?
• What tools do clients with coverage have at their disposal for finding local in-network providers (e.g., apps, online dashboards)?
• How reliable and helpful is the insurer when it comes to customer support on your end? How easy or difficult is it to talk to a human being when you have a question?
• What is the process of billing the insurance company? Do they offer any tools (e.g., apps, online dashboards) for in-network therapists?
• Are there any particular demographics the insurer especially serves? (e.g., Armed Forces members, federal employees, the employees of major employers where you live, Spanish-speaking clients, etc.)

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On-time payments and reliable support are key to growing your insurance practice. When you partner with a service like Headway, you can avoid dealing with insurance plans directly, and receive customized support and twice-monthly payments for the sessions you hold—even when a claim is delayed.

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If you’re not sure where to start, look at where your peers are. Among therapists in our 2026 survey who accept insurance, the most common networks were Aetna (80.7%), BCBS (76.3%), United (72.4%), and Cigna (67.2%). Fewer were in network with Medicare (27.1%) or Medicaid (25.3%). And 54.7% bill insurance through a platform like Headway rather than directly.

Finding out how to apply

Some insurers’ websites make it easy to find information on applying and becoming credentialed. Others do not. As a shortcut to finding insurers’ provider portals and application guides, try these Google searches:

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• [INSURER NAME] join network
• [INSURER NAME] mental health credential
• [INSURER NAME] provider application

Insurance credentialing by license type

The core process is the same for every license type, but who can credential you, and with which payers, depends on your license.

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• Licensed clinical social workers (LCSW, LICSW). Social workers were the largest license group in our 2026 survey, at 31.2% of respondents. Commercial insurers routinely credential LCSWs, and clinical social workers could enroll in Medicare well before the 2024 expansion described below.
• Licensed professional counselors and mental health counselors (LPC, LMHC, LCPC). Commercial insurers commonly credential counselors. Since January 1, 2024, counselors who meet Medicare’s requirements can also enroll in Medicare as mental health counselors (MHCs).
• Licensed marriage and family therapists (LMFT). Commercial insurers commonly credential LMFTs. Since January 1, 2024, LMFTs who meet Medicare’s requirements can enroll in Medicare too.
• Psychologists (PhD, PsyD). Licensed psychologists can be credentialed with commercial insurers and enroll in Medicare as clinical psychologists.
• Associates and pre-licensed clinicians. Policies vary by payer and by state. Many insurers only credential fully licensed clinicians, and Medicare requires MFTs and MHCs to be licensed. If you’re an associate, ask each insurer directly whether it credentials pre-licensed clinicians or allows billing under a supervisor.

Prepare your information for insurance credentialing

Unless you use a service like Headway, you must complete a separate application for each insurer you’d like to be credentialed by. 

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However, these applications—for the most part—all ask for the same information. 

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Before you start filling out applications, gather all of the following in advance:

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• Your name and home address
• Your practice’s name and address
• Your license information
• Your National Provider Identifier (NPI) number
• The healthcare taxonomy code for your practice
• A copy of your CV
• Proof you’re insured for malpractice (professional liability insurance)
• Proof of liability insurance covering rental property (if applicable)
• Paperwork covering any advanced training you’ve received

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In addition to each application to an insurance company, you’ll need an NPI and a single CAQH profile. Here’s how to get both.

Get your NPI and choose your taxonomy code

Your National Provider Identifier (NPI) is a unique 10-digit number that identifies you on insurance claims. Insurers, CAQH, and Medicare all ask for it, so get it first.

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Applying is free through the National Plan and Provider Enumeration System (NPPES), and CMS says the online application takes about 20 minutes. There are two types of NPI:

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• Type 1 (individual). For you as a clinician. Each person can only have one Type 1 NPI, and you keep using it if you join a new practice or enroll with new payers.
• Type 2 (organization). For entities such as group practices. If your practice is incorporated and bills under the business, you can get a Type 2 NPI for the business in addition to your own Type 1.

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When you apply, you’ll choose a healthcare provider taxonomy code that describes your license type. Common codes for therapists include (see the NUCC taxonomy code set and CMS’s MFT and MHC enrollment FAQ):

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• Clinical social worker: 1041C0700X
• Professional counselor: 101YP2500X
• Mental health counselor: 101YM0800X
• Marriage and family therapist: 106H00000X

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Use the code that matches your license, and keep it consistent across your NPI record, your CAQH profile, and your insurer applications.

Complete your CAQH profile

Most commercial insurers use CAQH to collect and verify your credentialing information. Instead of re-entering the same details for every insurer, you fill out one CAQH profile and authorize each insurer to view it. Once you register, you won’t need to do so again, but you will need to re-attest your information regularly.

What is CAQH? 

CAQH (the Council for Affordable Quality Healthcare) runs a shared database of provider information that health plans use for credentialing and provider directories. You, the provider, don’t pay to use it.

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In 2026, the organization rebranded as DataSpring, powered by CAQH, and the provider portal formerly called CAQH ProView is now called the CAQH Provider Data Portal. According to DataSpring’s clinician Q&A, your login and saved links still work, and the portal is still free for providers.

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Once you’ve registered, you’ll receive a CAQH ID. It’s a registration number insurance companies can use to look up your CAQH information. If you think you may already be registered with CAQH, but don’t remember your ID, you can request to have it sent by email.

When do you register with CAQH?

You don’t need to wait for an insurer to invite you. You can self-register online at any time, and it’s worth doing before you start insurer applications, since most commercial insurers will ask for your CAQH ID.

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If an insurer has already added you to its roster, you may receive a welcome email with your CAQH ID instead. Either way, you complete the same profile.

What information do you need for CAQH?

Before starting your CAQH profile, make sure you have the following information on hand:

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• Your NPI number
• Your license to practice therapy
• Your up-to-date CV
• Your malpractice insurance certificate
• Copies of your diplomas
• A list of your current and previous practice locations
• A completed IRS Form W-9
• A summary of any pending or settled malpractice claims (if applicable)

How do you register for CAQH?

Start on the CAQH self-registration page. After you receive your CAQH ID by email, you’ll create your login, fill out your profile, upload your supporting documents, and attest that everything is accurate.

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Finally, authorize the insurers you’re applying to so they can view your profile. Plan on about two hours for a first-time profile. You can save your progress and come back.

When do you re-attest your CAQH?

You must re-attest your CAQH profile every 120 days (every 180 days if you practice in Illinois), even if nothing has changed. If you miss the deadline, your profile status changes to Expired, which can hold up credentialing and recredentialing with your insurers. To re-attest, sign in to your CAQH account.

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Go through the filing and approval process

Once you file your application with each insurer, the wheels start turning. Certain steps will be followed internally by the insurance company as they consider your application. You, in turn, may be asked to provide supporting information before you’re invited to join the insurer’s network.

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Here are the typical steps to the application process. The exact order varies by insurer. For example, some only share a fee schedule or contract after their credentialing committee approves you.

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1. Application. You fill out your application and submit it to the insurer. This is the bulk of the work you’ll have to do to apply.
2. CAQH. The insurer will ask for your CAQH ID and check that your profile is complete, attested, and authorized for them to view. If you don’t have a CAQH profile yet, register right away so your application doesn’t stall.
3. Queries. If the insurer needs any additional information about you or your practice, they’ll contact you before moving on to the next step. Get back to them with any missing information ASAP so you don’t lose your place in the queue of applicants.
4. Proposed fee schedule. If you meet the basic requirements for joining the insurer’s network, they’ll send you a proposed fee schedule. It’s a breakdown of how much you can expect to be reimbursed for different services when you bill the insurer. 
5. Credentialing committee review. Once you’ve settled on a fee schedule—whether it’s one the insurer initially proposed, or another one that you negotiate—your application will be reviewed by a credentialing committee internal to the insurance company. They’ll consider your qualifications as a therapist as well as their own needs as a company: Their need for more therapists in their network, the needs of their customers, and their need to make a profit.
6. Approval process. If you’re approved, the insurer will begin the process of adding you to the network. This mostly consists of paperwork you’re never privy to, save the contract offer.
7. Contract offer. The insurer will send you a contract to sign so you can join their network. Carefully review this. Make sure the reimbursements specified by the contract match your expectations. Also, check for everyday errors or typos; a misspelled name or incorrect street address can lead to delays. If you have a lawyer, you may ask them to help you review the contents of the contract.
8. Contract signing. Once you’re happy with the contract you’ve been offered, sign it and submit it to the insurer. Keep a copy for your records.

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Once you’re in network, you’ll bill using CPT codes. Our Complete Guide to CPT Codes for Therapists and Complete Guide to Insurance Billing for Therapists walk you through what comes next.

Follow up (when? and how?)

Therapists who have gone through the detailed credentialing process will recommend you follow up with an insurance company after you submit your application.

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Phoning the insurer and checking on the status of your application helps to make sure everything is on track, that your application hasn’t been delayed for some reason, and that you haven’t missed any requests for additional info the insurer may have sent you.

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Following up is such a common practice, in fact, that some insurers designate specific amounts of time that must elapse before you contact them about your application. If an insurer has such guidelines, respect them. Breaking the rules won’t help the status of your application.

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If they don’t specify a particular span of time, follow up after three to four weeks. And be patient: Insurance companies are huge organizations, and they’re constantly processing new applicants. 

How long does insurance credentialing take for therapists?

The amount of time it takes to move from application to contract varies. It depends on your location, the services you provide, and the amount of applicants the insurer is currently processing.

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Many therapists find it takes 90 to 120 days from the day they submit an application to start seeing clients in-network, though some insurers move faster and some slower.

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Some states have laws that set deadlines for how quickly insurers must process credentialing applications. If an application seems stuck well past the insurer’s stated timeline, check with your state’s department of insurance.

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Medicare tends to be faster. CMS says clean online enrollment applications are generally processed within 15 calendar days, and clean paper applications within 30 (CMS).

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If you want to start seeing insurance clients sooner, partner with Headway to handle your credentialing instead. Most applications through Headway take 30 days or less. 

How to enroll in Medicare as a therapist

Medicare is a federal program, so you don’t join it through CAQH. You enroll directly with the Centers for Medicare & Medicaid Services (CMS).

The 2024 change for LMFTs and mental health counselors

Starting January 1, 2024, the Consolidated Appropriations Act, 2023 allowed marriage and family therapists (MFTs) and mental health counselors (MHCs) to enroll in Medicare and bill it directly for the first time (CMS). Medicare treats licensed professional counselors and clinical professional counselors as MHCs. Addiction counselors and alcohol and drug counselors who meet the same requirements can enroll as MHCs, too.

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To qualify as an MFT or MHC, CMS requires that you:

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• Have a master’s or doctoral degree that qualifies you for licensure in your state
• Are licensed or certified in the state where you provide services
• Have completed at least 2 years or 3,000 hours of post-master’s supervised clinical experience

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Medicare pays MFTs and MHCs 75% of the Medicare Physician Fee Schedule amount (CMS). Clinical social workers and clinical psychologists were already able to enroll before this change.

How to enroll

1. Get your NPI. You need a Type 1 NPI before you can enroll.
2. Apply online through PECOS. PECOS is Medicare’s online enrollment system, and it’s faster than the paper CMS-855I form. MFTs and MHCs don’t pay an application fee.
3. Respond to your Medicare Administrative Contractor (MAC). Your regional MAC processes your application. If it asks for more information, you have 30 days to respond or your application may be rejected.
4. Get your PTAN. Once you’re approved, you’ll receive a Provider Transaction Access Number (PTAN) to use with your MAC’s tools. You still bill Medicare using your NPI.
5. Revalidate. Medicare generally requires you to revalidate your enrollment every five years.

If you don’t want to bill Medicare

If you see Medicare clients but don’t want to enroll, you generally need to formally opt out by filing an affidavit with your MAC. An opt-out lasts two years and renews automatically unless you cancel it.

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Opting out can affect your ability to work with some Medicare Advantage plans and state Medicaid programs, so think it through before you file. If you don’t see Medicare clients at all, you don’t need to enroll or opt out.

Medicaid and state-specific rules

Medicaid is run by each state, so which license types can enroll, how you apply, and how long it takes vary from state to state. Start with your state Medicaid agency. In many states, you’ll also contract with the managed care plans that administer Medicaid benefits.

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Enrolling in Medicaid doesn’t enroll you in Medicare, or vice versa. Some state Medicaid agencies and Medicare Advantage plans require you to be enrolled in Medicare first (CMS).

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Other state-level differences to watch for include license requirements for billing, state laws on credentialing timelines, and CAQH’s longer 180-day re-attestation cycle for providers in Illinois.

What if I need to bill clients in multiple states?

If you are licensed as a therapist in multiple states, and you’d like to be able to bill insurance companies in all of those states, you’ll most likely need to complete a separate application for each license you hold.

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So, for example, if you held a therapist's license in California and another in Arizona, and you wanted to bill insurance companies in both states, you’d complete a California application for your California license and an Arizona application for your Arizona license.

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That’s the general rule. Individual insurance companies may differ in how they work with multi-state therapists. Contact the insurance company directly for more guidance.

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Medicare works the same way. CMS requires a separate enrollment in each state where you provide services, and you must be licensed in each of those states. Medicare does recognize licenses obtained through an interstate licensure compact (CMS).

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Practicing in more than one state affects your taxes, too. Here’s what to know about multi-state taxes for therapists.

Frequently asked questions

How long does insurance credentialing take for therapists?

Many therapists find it takes 90 to 120 days from submitting an application to seeing clients in-network, though some insurers move faster or slower. Medicare tends to be quicker, with clean online applications generally processed within 15 calendar days.

What do therapists need before applying to insurance panels?

Get your NPI first, then create and attest your free CAQH profile, since most commercial insurers will ask for your CAQH ID. You'll also want your license information, taxonomy code, CV, proof of malpractice insurance, and paperwork for any advanced training.

How often do therapists need to re-attest their CAQH profile?

You must re-attest every 120 days, or every 180 days if you practice in Illinois, even if nothing has changed. If you miss the deadline, your profile status changes to Expired, which can hold up credentialing with your insurers.

Can LMFTs and licensed professional counselors bill Medicare?

Yes. Since January 1, 2024, marriage and family therapists and mental health counselors, including LPCs, can enroll in Medicare and bill it directly if they meet its requirements. Those include a qualifying master's or doctoral degree, a state license, and at least 2 years or 3,000 hours of post-master's supervised clinical experience.

Do therapists licensed in multiple states need separate insurance applications?

In most cases, yes. You'll usually complete a separate application for each state license you hold, though individual insurers may differ. Medicare also requires a separate enrollment in each state where you provide services.

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Visit our Therapist Tax Center and Tax Deductions for Therapists Hub for everything you need to know about taxes as a practice owner. If you're just starting out, here's everything you need to know about How to Start a Private Practice as a Therapist.

Headway is a free service that makes it easier and more profitable for therapists and psychiatrists to accept insurance. From built-in client documentation, and scheduling to free CEUs and dedicated support, Headway provides the foundation you need to grow your insurance practice. Talk to a practice consultant to learn more.

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This post is to be used for informational purposes only and does not constitute legal, business, or tax advice. Each person should consult their own attorney, business advisor, or tax advisor with respect to matters referenced in this post.

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