If you are in crisis: call, text or chat 988. SAMHSA describes the 988 Lifeline as 24/7, free and confidential support for people in suicidal crisis or emotional distress (SAMHSA).
Short answer: check what your health plan or Medicare pays for therapy, and look for a health center with fees based on income, before you borrow. This is general information, not medical or tax advice.
Health insurance and the parity law
- CMS describes the Mental Health Parity and Addiction Equity Act as a federal law that generally prevents group health plans and insurers that provide mental health or substance use disorder benefits from imposing less favorable limits on those benefits than on medical and surgical benefits (CMS).
- Financial requirements such as coinsurance and copays, and treatment limits such as visit limits, on these benefits generally cannot be more restrictive than those that apply to substantially all medical and surgical benefits in the same classification (CMS).
- The law does not itself require a plan to cover mental health benefits, but the Affordable Care Act requires mental health and substance use disorder services as an essential health benefit in non-grandfathered individual and small group plans (CMS).
Ask your plan what it pays for therapy in and out of network, and whether a visit limit or prior authorization applies.
Medicare Part B outpatient mental health
- Part B covers individual and group psychotherapy with doctors or certain other Medicare-enrolled licensed professionals, including clinical psychologists, clinical social workers, marriage and family therapists and mental health counselors (Medicare.gov).
- After you meet the Part B deductible, you pay 20% of the Medicare-approved amount for visits to diagnose or treat your condition (Medicare.gov).
- You pay nothing for your yearly depression screening if your provider accepts assignment, and services can be given through telehealth (Medicare.gov).
Health centers with income-based fees
Under federal rules, a community health center must have a schedule of discounts adjusted to the patient's ability to pay, with a full discount for incomes at or below the federal poverty guidelines (nominal fees may still apply) and no discount above twice those guidelines (42 CFR 51c.303(f)). Search HRSA's Find a Health Center tool and ask the center whether it offers counseling or therapy.
Through your job
Ask HR whether your employer offers an employee assistance program, how much counseling it includes and whether there is any charge. Check your plan documents too: the parity rules above apply to group health plans (CMS).
HSA, FSA and tax rules
- Pub 502 lets you include amounts paid for psychiatric care, psychoanalysis, a psychologist for medical care, and therapy received as medical treatment (Pub 502).
- You can deduct only the part of medical and dental expenses above 7.5% of your adjusted gross income (Pub 502). How HSAs and FSAs work is in Pub 969.
If you still need to borrow
This example is only for the math, not an average price for therapy. It borrows $1,000 over 24 months at the Federal Reserve's August 2026 averages: 11.90% APR for 24-month personal loans and 22.36% for credit card plans (G.19). Your rate depends on your credit and the lender.
| Option | Monthly payment | Interest | Total paid |
|---|---|---|---|
| Personal loan at 11.90% | $47.03 | $128.72 | $1,128.72 |
| Credit card at 22.36% | $52.06 | $249.44 | $1,249.44 |
$47.03 x 24 = $1,128.72, and $52.06 x 24 = $1,249.44. If therapy continues for months, compare a loan with paying from your monthly budget: see how to budget for a loan payment, and for bills you already have, medical bill payment plan vs personal loan.
Checklist before you borrow
- Ask your plan or Medicare what you pay per visit, and whether the therapist is in network or accepts assignment.
- Ask HR about an employee assistance program.
- Search for a health center with income-based fees.
- Use HSA or FSA funds for eligible costs.
- In a crisis, call, text or chat 988 first.
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Sources
- SAMHSA: 988 Suicide and Crisis Lifeline
- CMS: The Mental Health Parity and Addiction Equity Act (MHPAEA)
- Medicare.gov: Mental health care (outpatient)
- 42 CFR 51c.303: Project elements (community health centers)
- HRSA: Find a Health Center
- IRS Publication 502: Medical and Dental Expenses
- IRS Publication 969: Health Savings Accounts and Other Tax-Favored Health Plans
- Federal Reserve: G.19 Consumer Credit (released October 7, 2026), terms of credit, August 2026: credit card plans and 24-month personal loans
Disclosure: Modern Lending Solutions is not a lender, loan broker or agent for any lender or loan broker, and does not make credit decisions. Any compensation we receive is paid by participating lenders, only for advertising services. This guide is general information, not financial or legal advice.