Why New Therapists Should Start with EAPs Before Contracting with Private Insurance
One of the first big questions providers face when opening a private practice is: Which insurance panels should I join first? Most people immediately think of private health insurance. But honestly, that is not the smartest place to start. A better move is beginning with Employee Assistance Programs (EAPs).
Here’s why they are such a great first step.
1. Faster Credentialing
Getting credentialed with private insurance can drag on for months, sometimes close to half a year. That is a long time to wait when you are trying to build momentum. With EAPs, credentialing is much faster. Most take just a few days to a couple of weeks, which means you can start seeing clients right away.
2. Referrals Start Almost Immediately
EAP referrals move quickly. In many cases, you can get your first client within a day or two of being fully set up. Instead of sitting around waiting for months, you can start filling your caseload almost immediately.
3. Easier to Negotiate Rates
One of the best-kept secrets about EAPs is how flexible they are with reimbursement. Unlike private insurance panels that hand you a “take it or leave it” rate, EAPs are usually open to negotiating. That gives you more control over your income right from the start.
4. Clients Often Continue After EAP Sessions End
Here’s something many providers don’t realize. EAP sessions are short-term (usually 3–8 sessions), but a lot of clients want to continue after their authorization runs out. That means you are not just getting temporary clients—you are building long-term relationships that can carry over to private insurance or self-pay.
5. Great for Building Reputation and Referrals
EAPs can be the reason someone finds you in the first place. Even if they came through short-term sessions, they might continue with you, tell a friend, or even refer a family member. It is one of the easiest ways to start getting your name out in the community.
6. A Smart Way to Decide on Insurance Panels Later
When you start with EAPs, you get a quick read on your client base. You will notice which private insurances your clients actually use. That makes it much easier to decide which insurance contracts are worth your time later instead of guessing.
7. Faster Payments = Better Cash Flow
Cash flow is one of the biggest struggles for new practices. EAP claims usually process faster than private insurance, which means money comes in sooner. That extra predictability can make all the difference while you are building your practice.
8. Easier to Work With
Compared to private insurance companies, most EAPs are simpler, more straightforward, and easier to manage. That takes a lot of stress off your plate when you are already juggling so much as a new practice owner.
A Few EAPs to Look At
If you are not sure where to start, here are a few EAPs that many providers contract with:
ComPsych
Lyra Health
Cigna EAP
Optum EAP
Magellan
Final Thoughts
Private insurance contracts will eventually be part of your practice, but starting with them right away often slows providers down. EAPs give you a faster path to clients, quicker payments, and opportunities for ongoing relationships. They also help you figure out which private insurance panels are actually worth joining when you are ready to expand.
If you are in the process of setting up your practice and feeling unsure where to begin, EAPs are one of the smartest and most practical starting points. And if you would like help figuring out which ones to choose, how to negotiate rates, or when to take the leap into private insurance, that is exactly the kind of support EBS provides.
