Unfortunately, psychologists face several problems if they partner directly with insurance companies. Insurance companies require that a client receive a psychiatric diagnosis to obtain payment for services. This diagnosis then becomes part of that client’s permanent medical record. Some individuals who do not meet criteria for a diagnosis still wish to pursue therapy, and others who do have a diagnosis (or meet the criteria for a diagnosis) may not want this information to be widely available. I cannot guarantee the confidentiality of your records once insurance companies obtain your mental health treatment information.
Additionally, insurance companies often place limitations or requirements on the type and length of therapeutic treatment. I do not believe that insurance companies are in a position to make these important decisions.