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Billing Glossary for Behavioral Health: 783 Insurance and Billing Terms Defined

Plain-English definitions of the billing, credentialing, claims, and payer terms that mental health practices run into every day. Each entry in this billing terms glossary shows why the term matters, an example, related terms, and a source.

In this glossary

  • 783 terms in 21 sections
  • Written for psychotherapists and psychiatrists
  • Source organization linked on every entry
  • Time-sensitive and payer-specific items flagged
  • Search, A–Z, section and payer filters
Quiet behavioral health practice office with a desk and armchairs, the setting for our billing terms glossary

What is a behavioral health billing glossary?

A behavioral health billing glossary is a reference list that defines the terms payers, clearinghouses, and billing teams use, so providers and staff read remittances, denial letters, and contracts the same way. This billing terms glossary is built for mental and behavioral health practices, and it serves both psychotherapists and psychiatrists.

What is the difference between a claim denial and a claim rejection?

A rejected claim never entered the payer's review because of a format or data error, so you fix it and resubmit it. A denied claim was reviewed and refused, so you appeal it or correct it under the payer's rules. Rejections come back from the clearinghouse or the payer's front end. Denials come back on the remittance advice with reason codes.

Three rule sets, kept separate: private-payer rules, Medicare and Medicaid rules, and state law often differ. Each entry is labeled General, Private payer, Medicare, or Medicaid (state-specific). When a rule varies by state or by payer, the entry says so. Confirm the current rule with the payer before you rely on it.

How to read an entry

Every entry follows the same six-part format, so you can scan quickly.

Definition

A plain-language explanation using industry-standard terms.

Why it matters

What the term changes in billing, compliance, payment, or credentialing.

Illustrative example

A made-up billing scenario that shows how the term works. It is not a real payer result.

Related terms

Links to connected entries so you can keep reading.

Reference source

The organization or payer whose guidance backs the entry.

Categories

The sections the term belongs to, plus a rule-set label.

Entries marked "Verify" depend on the payer, the plan, or the state. Entries marked "Time-sensitive" can change on a set schedule or by new rules. Check the source before you rely on them.

Written for both psychotherapists and psychiatrists

Most terms apply to every behavioral health practice. Where the two differ, the entry says so.

Psychotherapists

Start with the time-based psychotherapy codes, credentialing and enrollment, eligibility, superbills, and denials. Prescriber-only terms are marked.

Psychiatrists

Start with E/M codes and psychotherapy add-on codes, modifier 25, e-prescribing and EPCS, DEA registration, and prior authorization. Therapist-only terms are marked.

Find a term

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Recently updated

Acronyms

Terms by payer or program

Medicare (49)

Medicaid (55)

Commercial (1)

Blue Cross Blue Shield (14)

UnitedHealthcare / Optum (2)

Aetna (1)

Cigna / Evernorth (2)

Anthem / Elevance (2)

Humana (1)

Centene / Molina / Wellcare / Magellan (4)

Kaiser Permanente (1)

TRICARE / VA (2)

EAP (3)

Keep reading

CPT & E/M Code GuideLink at launch

Codes, modifiers and place of service.

Denied & Rejected Claims Follow-Up and AppealsLink at launch

How MCM South works denials.

Electronic Claims SubmissionLink at launch

Clean claims and clearinghouse basics.

Insurance Verification & Eligibility ChecksLink at launch

Benefits and eligibility before the visit.

Insurance CredentialingLink at launch

Enrollment and credentialing explained.

Who We ServeLink at launch

Psychotherapists, psychiatrists, solo and group practices.

Frequency & Documentation RequirementsLink at launch

Session frequency and documentation.

Billing FAQ

Answers to common billing questions.

Billing glossary questions

It is a reference list of billing, credentialing, claims, and payer terms with plain-English definitions. It is for solo and group practice owners, the office managers and staff who bill day to day, and industry professionals who need citable definitions.

Each entry links to its source organization, and time-sensitive entries are flagged so you can confirm the current rule. Payer and government rules change, so check the source or the payer before you rely on a definition for a claim or a contract.

No. Private payers, Medicare, Medicaid, and state law can differ, and Medicaid is set state by state. Blue Cross Blue Shield is a federation of independent plans, so one plan’s rules do not apply to another by default. Entries say when a rule varies.

No. Company and product names appear for reference only. Naming one is not an endorsement or a partnership. Where MCM South has an affiliate relationship, the entry says so next to the name.

No. This glossary is operational billing guidance. For anything with real financial or legal exposure, such as overpayments, audits, or contract disputes, talk to an attorney or a compliance officer.

Where the definitions come from

Each entry names the organization or payer whose guidance backs it. These are the federal, professional, and standards organizations used.

Company and product names appear for reference. Naming one is not an endorsement or partnership. Where MCM South has an affiliate relationship, the entry says so.

Operational billing guidance, not legal, clinical, or financial advice. Definitions are current as of the last review on 9/30/26. Reconfirm time-sensitive items with the source before you rely on them.

Can't pin down a billing term or a payer rule?

Tell us what you are seeing on your remittances or denial letters. We will point you to the right answer.