Music therapy is a reimbursable service under benefits for Medicare Partial Hospitalization Programs. However, in order for the program to be considered Active Therapy, the interventions cannot be purely recreational and must be individualized and based on goals specified in a treatment plan. According to Musictherapy.org, it must also fit the following criteria:

* Be prescribed by a physician.
* Be reasonable and necessary for the treatment of the patient’s illness.
* Be goal directed and based on a documented treatment plan.
* The goal of the treatment cannot be to simply maintain the patient’s current level of functioning. The individual must show some level of improvement.

Furthermore, Medicaid coverage varies from state to state. Some states offer waiver programs, and some states require the music therapy to achieve certain functional outcomes in order for the treatment to fall under an existing category that is covered by Medicaid.

And in regards to insurance, although the number of third-party reimbursements for music therapy is growing, the American Music Therapy Association estimates that about 20% of music therapists receive third-party reimbursement for the services they provide. Like other therapies, music therapy is normally pre-approved for coverage or reimbursement and is determined on a case-by-case basis. The good news is that reimbursement is available in a large variety of health care settings, with patients with varying diagnoses.