Psychiatry and Psychology Services

Medicare covers psychiatry and psychology services including psychiatric diagnostic evaluations (with or without medical services), psychotherapy (individual, family, group), crisis psychotherapy, psychoanalysis, narcosynthesis (physician only), and hypnotherapy when medically necessary and claims are submitted with a covered diagnosis. Psychiatric diagnostic evaluations are limited to once per day and are generally considered medically necessary once every 6 months per episode; psychotherapy and group services must be provided by state-authorized practitioners and exclude non-therapeutic activities (e.g., ADL training, recreational or social activities) and certain patient populations (e.g., severe/profound intellectual disability, dementia when psychotherapy would be ineffective).

"Evaluation and management (E/M) services may be billed for psychiatric evaluation or with psychotherapy when performed and represent physician work for medically necessary evaluation and treatment."