Multistate Licensing for Virtual Therapy Practices
Multistate Licensing for Virtual Therapy Practices
As virtual therapy becomes more widespread, many therapists are considering expanding their services to clients across state lines. Doing so requires careful planning and compliance with state-specific laws and regulations. Interstate compacts exist for some disciplines, but not all. When the compacts are fully active, providing services in multiple states will become significantly easier. But for now, it’s important to understand the ethics and regulations around multistate practicing. Here are some important factors to consider if you plan to see clients in multiple states.
1. Licensing Requirements
To legally provide therapy in another state, you must be licensed in that state. Some states allow this, and some do not. I recommend contacting the licensing board for your discipline in that state to clarify.
When the compacts become active, it is important to note that some states are not included. So always check the state’s licensing requirements and confirm that providing virtual services from a billing address in another state is acceptable.
Licensure requirements differ from state to state. What satisfies the licensing board in your home state may not meet the standards of another. Some states may have more lenient criteria, while others are more stringent.
Be prepared to manage multiple different CEU and renewal requirements for each state you are licensed. (Sign up for our newsletter to receive free resources including our multistate CEU tracker Excel sheet!)
2. Insurance Challenges
Insurance companies also have specific requirements for therapists working across state lines. To accept insurance in another state, you’ll need to go through the paneling process for that state. Some insurances will add your new state license to your profile and allow you to see clients in those states immediately, and some require a whole new application. Always clarify with each insurance company, and I recommend verbal clarification with the credentialing/network managers.
It is important to note that even if you’re paneled and licensed in the client’s state, some insurance providers may still require a single-case agreement simply because your billing address is located elsewhere. Again, always clarify with the insurance in the client’s state. For example, I am licensed and credentialed with Anthem in both Tennessee, Colorado, and Virginia. However, since my address is in Tennessee, I have to submit an out of network override request for any client I see with Anthem insurance that resides in Colorado or Virginia.
4. Liability Insurance for Multistate Practices
When expanding your therapy practice to multiple states, ensuring your professional liability insurance covers you adequately is essential. Here’s what to keep in mind:
Verify Multistate Coverage: Not all liability insurance policies automatically extend coverage to multiple states. Contact your insurance provider to confirm if your policy applies to the new states where you plan to practice.
Policy Adjustments: You may need to update or extend your coverage to meet the requirements of other states. Some states have specific minimum coverage amounts or other stipulations that your insurance must satisfy.
Interstate Compacts and Coverage: If you’re using an interstate compact to provide services, double-check that your insurance policy recognizes these agreements and offers protection in the participating states.
Telehealth-Specific Coverage: Make sure your liability insurance knows you provide telehealth services. This is usually not a big deal, but it is important to keep your liability insurance informed. I have heard that some insurers provide tailored policies for telehealth practices, which might be more appropriate for your multistate virtual services. These policies might address unique risks associated with telehealth, such as cross-jurisdictional legal complexities.
Conclusion
Expanding your practice across state lines can be a great opportunity to reach more clients and expand your practice, but it requires thorough research and planning. Stay informed about licensing compacts, be proactive in understanding state-specific rules, and keep open communication with insurance providers and your liability insurance to ensure a smooth process. With diligence and adaptability, you can successfully broaden your reach while remaining compliant with regulations.
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