For many therapists and mental-health professionals, accepting insurance has been an important way to make care accessible and build a client base.

But insurance participation can also involve contracts, reimbursement requirements, administrative processes, credentialing and network rules.

For some providers, the question eventually becomes:

“Is staying on this insurance panel still the right model for my practice?”

Depaneling from insurance means ending participation with an insurance company’s provider network. A provider may leave one panel while remaining contracted with others, or may eventually transition toward a private-pay or out-of-network practice.

The decision is individual, and the process requires planning.

The American Psychological Association’s 2025 Practitioner Pulse Survey found that 38% of psychologists reported that they did not accept any form of health insurance. Among psychologists who did accept insurance, 10% reported stopping participation in a private or commercial insurance panel during the previous year. Among psychologists who did not accept insurance or had stopped participating in some panels, insufficient reimbursement, administrative issues and payment reliability were among the reported barriers.

What Does Depaneling From Insurance Mean?

Depaneling means a provider terminates participation in an insurance network.

Depending on the provider’s contracts and practice model, this could mean:

• Leaving one insurance panel
• Leaving several insurance panels
• Remaining in-network with selected insurers
• Moving toward out-of-network care
• Moving toward a private-pay model
• Creating a hybrid practice

Depaneling does not automatically mean that every client must immediately stop seeing the provider.

The applicable insurance contract, state requirements and circumstances surrounding the termination matter.

Why Are Therapists Leaving Insurance Panels?

There isn’t one reason.

Every provider has different financial, professional and practice-management considerations.

However, national survey data show that insurance participation can present challenges for psychologists.

In the APA’s 2025 Practitioner Pulse Survey, psychologists who did not accept insurance or had stopped participating in an insurance panel most commonly identified insufficient reimbursement (75%), administrative issues (57%), and concerns about payment reliability (43%) as barriers.

The APA’s 2024 survey similarly found that psychologists in the relevant group cited insufficient reimbursement, administrative issues and payment reliability as leading barriers.

These are survey findings among psychologists. They should not be interpreted as meaning every therapist has the same experience with insurance.

Depaneling Doesn’t Have to Mean Going Completely Private Pay

These terms are sometimes confused.

Depaneling

Leaving participation with a particular insurance network.

Out-of-network

A provider isn’t contracted as an in-network provider with a particular plan. Depending on the client’s insurance policy, out-of-network benefits may still be available.

Private pay

The client pays the provider directly rather than the provider treating the client as an in-network insurance patient.

Hybrid practice

A provider accepts some insurance plans while also serving private-pay or out-of-network clients.

A therapist can therefore make changes gradually rather than necessarily changing the entire practice model at once.

Start With Your Insurance Contract

Before notifying an insurance company, review the agreement.

Look for provisions addressing:

• Termination
• Required notice
• Effective termination date
• Existing clients
• Claims after termination
• Documentation
• Credentialing
• Provider directories
• Post-termination responsibilities
• Payment and recoupment provisions

Don’t assume every payer follows the same process.

The contract controls the contractual relationship, subject to applicable law and regulation.

If you’re unsure about your obligations, consider consulting an attorney or qualified healthcare-contract professional.

How Much Notice Is Required?

There is no single notice period that applies to every insurance contract.

Your agreement may specify the required notice and the method by which notice must be provided.

Ask the insurance company to confirm in writing:

1. That your notice was received.
2. Your official termination date.
3. Any remaining contractual obligations.
4. How existing clients will be handled.
5. How outstanding claims should be submitted.
6. When your directory information will be updated.

Keep copies of your correspondence.

What Happens to Existing Clients?

This is one of the most important issues to consider.

A client who selected your practice because you were in-network may face different costs when your network participation ends.

Depending on the circumstances, continuity-of-care protections may apply.

Washington’s Office of the Insurance Commissioner explains that consumers can have continuity-of-care protections when a provider-insurer contract ends, under qualifying circumstances. Washington also has requirements concerning notices about provider-network contract terminations.

Federal continuity-of-care protections under the No Surprises Act may also apply in qualifying circumstances.

Providers should determine which requirements apply to their specific situation rather than assuming that one rule applies to every client.

Washington Providers: Pay Attention to Current Requirements

For therapists practicing in Washington, the state’s provider-network rules are particularly important.

Washington’s Office of the Insurance Commissioner states that state law requires standard notices when certain provider contracts are expiring or being terminated. The OIC provides standard template language for these notices.

The OIC also explains that Washington law provides continuity-of-care protections in qualifying situations when a provider’s contract with an insurer ends.

Requirements can change, so Washington providers should check current OIC guidance and applicable law when planning a network termination.

Talk With Your Clients Before the Change Creates a Surprise

A client shouldn’t ideally discover that your insurance status has changed when they receive an unexpected bill.

Depending on your contractual and legal obligations, consider communicating clearly about:

What is changing?

Explain which insurance relationship is ending.

When is it changing?

Provide the applicable effective date.

What could change financially?

Explain that the client’s insurance coverage and out-of-pocket responsibility may change.

What options might exist?

Depending on the client’s plan and your practice, options could include:

• Continuing as a private-pay client
• Using out-of-network benefits
• Finding another in-network provider
• Exploring other coverage
• Transitioning to another clinician

Avoid guaranteeing a specific insurance reimbursement amount unless the client’s plan has confirmed it.

Out-of-Network Doesn’t Always Mean No Insurance Coverage

This distinction is important for both providers and clients.

Some insurance plans offer out-of-network benefits. Others may provide little or no coverage for out-of-network care.

The Washington OIC advises consumers to check their individual plan for out-of-network benefits and other cost-sharing requirements.

Therefore:

Out-of-network does not automatically mean uninsured.

Clients should verify their individual benefits directly with their insurance company.

Build Your Referral Strategy Before You Depanel

One of the biggest business considerations is what happens to referrals.

If an insurance directory has been a major source of new clients, leaving that network may change how prospective clients discover you.

Before depaneling, consider developing multiple referral channels:

• Your website
• Google search
• Professional directories
• Physician referrals
• Therapist-to-therapist referrals
• Community organizations
• Professional networking
• Social media
• Educational content
• Existing professional relationships
• Mental-care directories

The goal isn’t necessarily to replace one referral source with another overnight.

It’s to create multiple ways for potential clients to discover your practice.

Your Online Visibility Matters

When someone is looking for a therapist, they may want to know:

• What does this provider specialize in?
• Who do they work with?
• Where are they located?
• Do they offer telehealth?
• What types of concerns do they address?
• What credentials do they have?
• How can I contact them?
• Are they accepting new clients?

A clear professional profile can answer those questions before a prospective client ever makes a phone call.

Our Clients Come From Diverse Backgrounds

TheraConnect is designed for people from all backgrounds, identities, life experiences and walks of life who are looking for mental-care support.

There isn’t one type of person who seeks mental-care support.

People searching for a provider may have different:

• Cultural and family backgrounds
• Ages and stages of life
• Personal experiences
• Careers and educational backgrounds
• Locations and communities
• Mental-health concerns
• Goals for support
• Preferences for care
• Interest in in-person or virtual sessions

That diversity matters to providers.

Your practice may be highly relevant to someone who is specifically looking for your specialty, experience, approach or type of care.

A directory can provide another way for those people to discover you.

Your expertise may be exactly what someone is looking for.

Why Provider Discoverability Matters After Depaneling

Leaving an insurance panel can change where clients find you.

That’s why building a strong discovery strategy can be an important part of the transition.

A professional directory profile can provide another place where prospective clients can learn about:

• Your credentials
• Your specialties
• Your services
• Your location
• Your session format
• Your professional website
• How to contact you

For a therapist moving toward private pay or a hybrid model, discoverability becomes part of practice marketing.

Don’t Let Leaving Insurance Mean Becoming Invisible

Your practice doesn’t disappear when you leave an insurance network.

Your:

Experience.
Credentials.
Specialties.
Website.
Professional relationships.
Reputation.
Knowledge.
Community presence.

all remain part of your practice.

What may change is how people find you.

That is why it can be useful to develop several referral and visibility channels before your insurance relationship ends.

Build a Diversified Referral System

Consider building several sources of new-client discovery.

1. Search

Make your website easy to discover when people search for your specialty.

2. Professional referrals

Build relationships with other healthcare and mental-health professionals.

3. Educational content

Publish useful information related to your areas of expertise.

4. Professional directories

Maintain accurate profiles where potential clients search for providers.

5. Community relationships

Connect with organizations and communities that may refer people to appropriate care.

6. Social media

Use social media to educate and establish your professional presence.

No single source has to carry your entire practice.

Depaneling From Insurance Checklist

Before You Leave

☐ Review your insurance contract
☐ Identify the termination requirements
☐ Determine your effective termination date
☐ Review applicable state requirements
☐ Determine how existing clients will be handled
☐ Review outstanding claims
☐ Determine your post-termination obligations

Client Transition

☐ Identify affected clients
☐ Review continuity-of-care requirements
☐ Communicate changes appropriately
☐ Explain potential changes in cost or coverage
☐ Provide appropriate transition information

Online Presence

☐ Update your website
☐ Review your insurance information
☐ Update professional directories
☐ Review your Google Business Profile
☐ Update social-media profiles
☐ Make private-pay information clear

Referral Strategy

☐ Build professional referral relationships
☐ Improve your website SEO
☐ Create or update professional directory profiles
☐ Publish educational content
☐ Develop community referral relationships
☐ Make your specialties easy to find

Questions to Ask Your Insurance Company

Before completing the transition, consider asking:

1. What is the required termination notice?
2. What is my official termination date?
3. How will affected clients be notified?
4. Are continuity-of-care provisions applicable?
5. How should outstanding claims be handled?
6. Are there post-termination documentation requirements?
7. When will my provider-directory listing be updated?
8. Are there additional forms I need to submit?
9. Are there outstanding credentialing requirements?
10. Can you provide written confirmation of my termination date?

The Business Side of Going Private Pay

Moving away from insurance isn’t simply a billing decision.

It can change the way your practice operates.

Your marketing, website, referrals and professional visibility may become more important because potential clients may no longer be discovering you through an insurance network.

That can mean putting more attention into:

SEO

Professional directories

Google Business Profile

Referral relationships

Educational content

Community networking

Professional branding

Online discoverability

The objective is to create a practice that can be discovered through multiple channels.

How TheraConnect Fits Into the Transition

TheraConnect is a mental-care discovery directory, not a therapy provider and not an insurance billing platform.

For providers building or expanding a private-pay or hybrid practice, TheraConnect offers another place where prospective clients can discover their professional information.

Your TheraConnect profile can help showcase:

• Your professional profile
• Your specialties
• Your credentials
• Your practice information
• Your care format, where applicable
• Your website
• Information potential clients can use when deciding whether to contact you

TheraConnect’s client audience includes people from diverse backgrounds and walks of life who are looking for mental-care

resources and providers.

Your Expertise Deserves to Be Found

You built your practice to help people.

If you’re changing your insurance model, you shouldn’t have to disappear from the places where potential clients are searching.

Get found.
Get connected.
Help more people.

Join TheraConnect

Create your professional profile and make your practice easier for potential clients to discover.

Join TheraConnect as a Provider →

Frequently Asked Questions

What is depaneling from insurance?

Depaneling is the process of ending a provider’s participation in an insurance network. A provider may leave one panel while remaining in other networks.

Why do therapists leave insurance panels?

Reasons vary. APA surveys of psychologists have identified reimbursement rates, administrative requirements and payment reliability as commonly reported barriers to insurance participation.

Can I leave one insurance panel but keep another?

A provider may have different contractual relationships with different insurers. Whether you can do so depends on the applicable contracts and requirements.

Can clients continue seeing me after I leave an insurance panel?

Potentially. Continuity-of-care protections may apply in certain circumstances. Providers should review applicable federal and state requirements and their contracts. Washington, for example, provides continuity-of-care protections in qualifying situations.

Can clients use out-of-network benefits?

Some insurance plans provide out-of-network benefits, while others do not. Clients should contact their insurer to verify their specific benefits.

Do I need a referral strategy before depaneling?

It can be useful to establish multiple sources of prospective-client discovery before leaving a network, particularly if insurance directories have historically generated referrals.

Can a mental-health directory help private-pay therapists?

A directory can provide another discovery channel where prospective clients can learn about a provider’s professional information and determine whether the provider may be appropriate for their needs.

Final Thoughts

Depaneling from insurance is a practice transition—not simply a billing change.

Before making the change, understand your contract, determine your obligations, consider affected clients, review continuity-of-care requirements and develop a referral strategy.

Then make sure prospective clients can still find you.

For providers building a private-pay or hybrid practice, visibility matters.

TheraConnect gives providers another place to put their professional expertise in front of people who are searching for mental-care support—including people from diverse backgrounds, experiences and walks of life.

Your expertise deserves to be found.

Join TheraConnect →
TheraConnect Provider Sign-Up

Sources

• American Psychological Association — 2025 Practitioner Pulse Survey: current insurance participation and reported barriers among psychologists.
• American Psychological Association — 2024 Practitioner Pulse Survey: insurance participation and reported barriers.
• Washington State Office of the Insurance Commissioner — Provider Network and Contract Negotiations: network changes and continuity-of-care information.
• Washington State Office of the Insurance Commissioner — Network Access Filing: provider-contract termination notice requirements and standard notices.

Important: This article is educational content for TheraConnect and isn’t legal, insurance, billing, or clinical advice. Requirements vary by payer, contract, state and individual circumstances.