Is this true about mental health and insurance companies?

Someone answered one of my previous posts about mental health and insurance companies like this:

When dealing with ANY mental health issues - if at all possible, pay for them entirely out of pocket, and don't get the insurance company involved. This is because of privacy reasons. Yes, I know all about these laws that supposedly protect your privacy. But your mental health professional will have to provide your insurance company with plenty of details in order to get reimbursed for their services. No, they won't tell them every single thing, but in my opinion, I don't want any unnecessary information floating around my insurance company. This sort of information stays around a long time, and it could come back to haunt you many years from now, if not sooner. If you pay out of pocket, and do not submit any claims to the insurance company, then the anything that you and your mental health professional discuss will stay between the two of you.

...continued: But still, I would stress the fact to the therapist that you do NOT give your permission for them to give out ANY information about you without your prior written authorization.
Just my opinion...

Is this true? And what does she mean "..it will come back to haunt you.." Now I am terrified of seeking help for my probable condition. Any knowledge or advice you can give me would be appreciated... thanks!

i wouldnt worry too much, id have insurance cover it especially if treatment is expensive. if you think its just going to cost a few hundred a year and it really bothers you, then pay cash if you can afford it if you really need the peace of mind. there are stiff penalties for information to be disclosed to 3rd parties for inappropriate/malicious use, i think its like a $250,000 fine and 5 years in prision. so no, your employer cant contact the insurance company and get all your medical history and withhold a promotion or anything like that.

I would pay out of pocket because any history of mental health issues can make it nearly impossible to be accepted by an insurance company to receive health insurance. I know this has totally screwed up my family's ability to pay for health insurance now that my dad is self-employed. Report It

"...continued: But still, I would stress the fact to the therapist that you do NOT give your permission for them to give out ANY information about you without your prior written authorization.
Just my opinion..."

They can't see you if you disallow them to give out information at all. The insurance company may need certain info (but most certainly not every detail) in order to pay and process claims.

Most insurance companies have limited mental health benefits. I wouldn't worry about how much information your thherapist will send to the insurance company, it will be just enough for him to get paid... IE treatment for depression... I am sure the information sticks around for awhile simply to see if there is recurring. Don't worry about what might happen get yourself the help you need.

I am sure your insurance company would love to have you not be reimbursed for your care. But I wouldn't worry about it. I know from experience that psychiatric records are locked up pretty tight. Tighter than for other medical treatments.

I had a family member admitted to a psych hospital in the past and whenever I called they could not even confirm that the person was in the hospital until they signed a release form. I was telling them I knew the person was there because I brought them in, but they would not say anything.

whoever gave you that answer needs to seek some professional help.

if you have insurance that covers you use it. HIPAA was written to insure the proper transmission of and dispensing of medical records. all the insurance carriers receive is a bill with a code for what services are rendered they do not receive your actual medical records. this is what HIPAA is all about, getting the appropriate information to those who need it and nothing more then that.

Your privacy is covered by the Health Insurance Portability and Accountability Act (HIPAA). All health care providers are very serious about this, particularly mental health providers. They can lose their license if anything happens to your information. They can't have your information in a non-password protected system and if they have your information on paper, it cannot be thrown away without being shredded. If you are concerned about this. I'd suggest asking the doctor's office about it. If they don't know anything about HIPPA, then I'd change doctors.