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Accurate Coding in Behavioral Health Billing Company

Accurate Coding in Behavioral Health Billing Company
Published on 5/16/2025by Denise Corbisiero

Running a behavioral health facility comes with many responsibilities, and one of the more important ones is having accurate coding in the billing department. Accurate and strategic coding isn’t just a matter of compliance; it’s critical for maintaining financial health and sustainability. With insurance requirements becoming more complex and reimbursement delays more common, it’s vital for behavioral health facilities to adopt precise coding practices.

At Integrity Billing, we’ve seen firsthand how proper coding can dramatically improve reimbursement outcomes. Here’s a breakdown of why coding matters and how your facility can optimize it for better results.

Why Coding Accuracy Matters in Substance Use Disorder Treatment

Substance use disorders (SUDs) are complex brain disorders that require treatment and intervention. There are a wide range of treatment options to accommodate individuals with SUD, such as outpatient therapy, residential care, and medically supervised detox. Each treatment option requires nuanced documentation and billing codes that clearly communicate medical necessity and level of care. Unfortunately, even the smallest errors can result in underpayment, denials, or lengthy appeals.

The benefits to having proper coding are:

  • Support medically necessary services, such as medication-assisted treatment (MAT)
  • Reduce delays and denials due to coding inconsistencies
  • Ensure compliance with payor-specific guidelines
  • Accurately reflect the intensity and scope of care
  • Capture all eligible services for full reimbursement

Common Coding Challenges in SUD Billing

Despite best intentions, many facilities encounter challenges when it comes to substance use disorder treatment billing. These can include using outdated or non-specific codes, failing to link diagnoses with services rendered, inconsistent documentation, and overlooking payor-specific rules. And sometimes, it’s simply a misunderstanding of HCPCS (Healthcare Common Procedure Coding System) and CPT (Current Procedural Terminology) codes.

Even though most of these errors are unintentional, they can lead to major problems like reduced payments or even allegations of fraud. This is why it’s so important for clinical and billing staff to be on the same page when it comes to coding guidelines.

Best Practices to Maximize Reimbursement

One of the best approaches to maximizing reimbursement is to stay up-to-date with CPT, HCPCS, and ICD-10 codes. These codes are updated on a regular basis, often with little notice. Coding teams should be trained on the latest updates, especially as behavioral health continues to evolve.

Vague diagnosis codes can also be a problem, so the most specific codes should be used when possible. An “unspecified drug use disorder” is likely to demonstrate less necessity than one that specifically identifies the individual's condition. For example, if the patient is experiencing an opioid use disorder, it should be coded as such.

Another best practice is to ensure the accurate use of CPT codes. For example, individual psychotherapy is billed differently depending on its length: 30, 45, or 60 minutes. Overbilling (e.g., coding a 60-minute session for a 30-minute session) can trigger audits or recoupment.

The place where services are rendered also matters in coding (e.g., outpatient clinic, telehealth, residential facility). Lastly, proper documentation should always be provided to support the code, avoiding denied claims and audits. In some cases, billing modifiers can help clarify a service and speed up approvals.

Our Approach to Optimized Coding

Here at Integrity Billing, we understand the unique billing landscape in behavioral health. We offer full-service revenue cycle management with compliance at the front end. With our team by your side, you won’t have to worry about minor errors causing big problems.

Our team of medical coders and behavioral health billing experts perform coding audits, educate clinical staff on proper documentation, and monitor changes in code sets and payor policies. We don’t just submit claims—we partner with you to build a more resilient and financially secure treatment program. This way, you can continue doing what you do best and support as many people as possible.

Get in Touch with Us Today

Maximizing reimbursement through proper coding isn’t about gaming the system; it’s about ensuring fair compensation for the vital care you provide. In the world of substance use treatment, every dollar matters. With the right coding practices and support, your facility can increase revenue, reduce claim issues, and focus more energy on helping your clients recover.

Let Integrity Billing help you code smarter, get paid faster, and grow stronger. Give us a call today to schedule a consultation at 800-683-5640.

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