Skip to content

Good Faith Estimates, HIPAA, and Compliance: What You Actually Need to Know

Compliance is the part of private practice most likely to be described in a tone of dread. Some of that is warranted. The rules are real and the consequences can be serious. But a lot of compliance content is written to sell reassurance, and it blurs the line between what the law requires of a solo clinician and what a large health system has to do. Here’s the floor.

The non-negotiables

Informed consent before treatment, consistent with your licensing board’s rules and your professional code. A written notice of privacy practices, if you’re a HIPAA covered entity. A Good Faith Estimate for clients who are uninsured or choose not to use insurance. Records kept securely and retained for the period your state requires. And a plan for crises, written down before you need it.

Are you a HIPAA covered entity?

Here’s where a lot of anxiety is misplaced. Under HHS’s definition, a health care provider is a covered entity when it transmits health information electronically in connection with standard transactions, such as billing insurance electronically. A purely private-pay clinician who never does that may not be a covered entity at all. That doesn’t make confidentiality optional. Your license, your ethics code, and state law, which in Wisconsin protects mental health records under Wis. Stat. 51.30, still apply. Most clinicians follow HIPAA practices anyway, because they’re a sound standard and because a practice that later takes insurance becomes covered.

The Good Faith Estimate in plain terms

Under the No Surprises Act, you give uninsured and self-pay clients a written estimate of expected charges. For a service scheduled at least three business days out, it’s due within one business day of scheduling; for one scheduled ten or more business days out, within three. For ongoing therapy, one estimate can cover up to twelve months. If the final bill comes in $400 or more above the estimate, the client can start a dispute process. The estimate needs specific elements, including expected service codes and charges, your NPI and tax ID, and the dispute rights.

Where state law is stricter

Federal rules set a floor. States can go further, and mental health records often get more protection than other health records. Minors, release of information, and record retention are where state rules most often differ, so check your own state on each.

A one-page compliance floor

Write down, on one page, how you handle each of these: consent, privacy notice, Good Faith Estimates, record storage and retention, release of information, and crisis response. If you can’t fill in a line, that’s your next task. If you can fill in all six, you’re in better shape than most new practices, and you didn’t need to be afraid to get there.

Request an invite

caret care opens to clinicians in small groups. Tell us who you are and where you're licensed. Requests are reviewed within 2 business days, and if the current group is full, you'll start on the waitlist. Requesting is free; nothing is charged unless you're invited and choose to sign up.

Your invite and sign-up code go here.

Your licenses

One row per state where you hold an active license. Add a row for each additional state.

Where are you in building your practice?
What's your license status?
When do you plan to see your first client in your own practice?
Will you take insurance, private pay, or both?
Beta testers give feedback periodically through short surveys and one 30-minute call. Are you up for that?

Optional. A sentence or two is plenty.