Therapist Insurance Glossary: CAQH, NPI, EOB, CPT & More
For Clients

Insurance and Headway Glossary: 30 Terms Every Therapist Should Know

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Last reviewed: October 30, 2026

Insurance-based practice comes with its own language. Use this glossary as a quick reference when reading Headway’s Help Center or talking to clients about their benefits.

The glossary grouped into credentialing, billing and client cost terms
The glossary grouped into credentialing, billing and client cost terms

Credentialing terms

CAQH ProView – An online database where providers store credentialing information that insurers (and Headway) use to verify them. Most insurers expect you to re-attest regularly.

Credentialing – The insurer’s process of verifying your license, education, insurance and history before you can bill as in-network. See our credentialing guide.

Recredentialing – Repeating verification on a cycle; about every three years on Headway. See recredentialing.

In-network / paneled – You have a contract (directly or through Headway) to bill a specific insurer at agreed rates.

NPI (National Provider Identifier) – A unique 10-digit ID for US healthcare providers. Type 1 is for individuals; Type 2 is for organisations.

DEA registration – Federal registration required to prescribe controlled substances.

CDS registration – A state-level controlled substance registration required in some states.

PSYPACT – An interstate compact for psychologists. Headway says it does not count as a license for insurance credentialing.

Malpractice (liability) insurance – Professional insurance required for credentialing. Headway asks for current coverage and a 10-year history.

Billing and coding terms

CPT code – A code describing the service, such as 90834 for a 45-minute psychotherapy session. See our CPT guide.

ICD-10 code – The diagnosis code that supports medical necessity.

E/M code – Evaluation and management codes (such as 99213) used mainly by prescribers.

Add-on code – A code billed together with a primary code, such as 90785 (interactive complexity).

Place of service (POS) – Where the service happened: 11 office, 10 telehealth at home, 02 telehealth elsewhere.

Modifier – A two-character code added to a CPT code to give extra information, for example for telehealth.

Claim – The bill sent to the insurer after a session. Headway submits claims for you. See how claims work.

Denial – The insurer refuses to pay a claim, for example because coverage ended.

Prior authorization – Insurer approval required before certain services on some plans.

Coordination of benefits (COB) – Rules for which plan pays first when a client has more than one. Headway bills primary insurance only.

Session confirmation – In Sigmund, entering the CPT code, diagnosis and note after a session so Headway can bill and pay you.

Client cost terms

Copay – A flat amount per session.

Deductible – What the client pays before insurance contributes, usually reset yearly.

Coinsurance – The client’s percentage of the cost after the deductible.

Out-of-pocket maximum – A yearly cap on the client’s costs.

EOB (Explanation of Benefits) – The insurer’s statement showing what was billed, paid and owed.

Full cost of care – The rate Headway has agreed with the insurer, charged when insurance does not cover a session.

Out-of-network (OON) – A plan or provider outside the network. Headway does not work with out-of-network benefits.

EAP (Employee Assistance Program) – An employer-funded benefit with a limited number of sessions, separate from regular health insurance.

Medicare Advantage – Private plans that provide Medicare benefits. Headway accepts select plans; it does not accept Original Medicare (Part B).

Medicaid managed care – State Medicaid benefits delivered through private plans; Headway accepts select plans in some states.

Headway-specific terms

Sigmund – Headway’s provider portal at sigmund.headway.co. See what is Sigmund.

Insurance Status page – Shows when each carrier has approved you and your guaranteed-payment date.

Sigmund Lite – A limited access level for clinicians in a group practice. See group practices on Headway.

Payout – Headway’s twice-monthly payment to providers on the 15th and last day of the month.


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