Understanding the Counseling Compact and Its Implications for Michigan LPCs:

A Comprehensive Evaluation by the Michigan Mental Health Counselors Association (MMHCA)

Prepared by:

Michigan Mental Health Counselors Association (MMHCA)
Executive Board:

Chris DeBoer, President
Krystin Sankey, Treasurer
Carol Berger, Secretary
Dr. Joy Creel, Member
Dr. Larry Pfaff, Member
Lauri Rowe, Member
Dr. Elizabeth Teklinski, Education & Outreach Chair

Executive Summary

The Michigan Mental Health Counselors Association (MMHCA) conducted a survey among Michigan Licensed Professional Counselors (LPCs) to gauge their awareness and opinions on the Counseling Compact. Of the 290 respondents, 45% indicated they did not have enough information to determine whether Michigan should join the Compact.

This report serves as an objective evaluation of the Counseling Compact, providing Michigan LPCs with essential information on:

The benefits and challenges of the Compact.
The potential impact on private practices and the broader counseling profession.
Key legal and ethical considerations.
The role of large telehealth platforms in shaping the industry.

As this landscape evolves, MMHCA remains committed to informing and advocating for Michigan LPCs to ensure they can make informed decisions about their professional future.

The Counseling Compact: An Overview

The Counseling Compact is an interstate agreement that allows LPCs to practice across member states without needing multiple licenses. Instead, they are granted a "privilege to practice" in Compact states.

Key Provisions of the Compact

Eligibility Requirements:
- Must hold a valid full license in their home state.
- Must have earned a master’s degree in counseling (60 credit hours for new graduates).
- Must have completed supervised clinical experience.
- Must pass an FBI background check.
- Note: On October 8, 2024, the Counseling Compact Commission adopted a rule grandfathering in LPCs who earned their degrees before their home state became a Compact member.
"Privilege to Practice" Model:
- LPCs from Compact member states can apply for practice privileges in other Compact states, eliminating the need for separate licenses.
Centralized Licensing Database:
- The Compact will maintain a national database tracking licensure and disciplinary actions.
- Expected completion: Late 2025. No LPCs will receive privileges to practice in other states until this database is operational.

Potential Benefits of the Compact

For Counselors:

Increased mobility and flexibility, especially for those practicing telehealth.
Ability to serve clients across multiple states without securing additional licenses.
No additional continuing education (CEU) requirements beyond their home state.

For Clients:

Greater access to counselors, particularly in underserved areas.
Improved continuity of care when relocating between Compact states.

Key Challenges and Considerations for Michigan LPCs

1. Increased Market Competition

Large nationwide telehealth companies can leverage the Compact to expand rapidly, potentially outpacing small, locally based practices.
Additional out-of-state LPCs could enter Michigan's market, increasing competition.
Many counselors, social workers, and psychologists have already reported a decline in referrals, which some attribute to the rise of venture capital-backed telehealth platforms.

2. Pressure on Private Practices

Well-funded corporate telehealth providers can operate on large marketing budgets, making it difficult for independent practitioners to compete.
There is concern that the commercialization of mental health services may devalue traditional therapeutic relationships.

3. Compliance with Multiple State Regulations

LPCs must understand and comply with the laws, regulations, and scope of practice of every state where they are granted a privilege to practice.
A disciplinary action in one state could result in the loss of practice privileges in all Compact states.

4. Potential Risks for Clients

The growth of telehealth services may reduce access to local, in-person resources.
Large platform dominance may result in fewer affordable in-person options, impacting clients who prefer traditional face-to-face counseling.

Current Landscape of Michigan’s LPC Workforce

Total Licensed Counselors in Michigan: 11,786
Licensed Professional Counselors (LPCs): 9,323
Limited Licensed Counselors (LLCs): 2,463
Out-of-State LPCs Licensed in Michigan: 1,227 (~10% of total LPCs)

Michigan LPCs can currently apply for licenses in many other states through existing licensure processes. However, the Compact would centralize and standardize these procedures.

The Role of Large Telehealth Platforms

Advantages of Large Platforms (BetterHelp, Alma, Headway, Grow, etc.)

Rapid expansion and greater client reach.
Cost savings for clients and insurers.
Potential integration of AI tools to improve efficiency.

Concerns and Risks

Large platforms may prioritize profitability over quality care.
Independent practitioners may be marginalized, making it harder to sustain private practices.
Over time, insurer reimbursement rates for counselors may decline, reducing earnings for practitioners.

Broader Trends in Mental Health and Behavioral Health Care

Venture Capital Influence: The growing involvement of corporate investors in behavioral health raises questions about the prioritization of profit over patient care.
Vertical Integration: Large corporations are increasingly acquiring smaller mental health providers, consolidating power in the industry.
AI in Mental Health: While AI offers potential efficiency benefits, ethical concerns remain about its role in client care and decision-making.

Why This Matters for Michigan LPCs

The Counseling Compact represents a significant shift in how LPCs practice across state lines. While it offers convenience and expanded opportunities, it also introduces complex challenges, particularly for private practitioners.

Michigan LPCs need to carefully assess how the Compact aligns with their professional goals and ethical responsibilities.

MMHCA’s Commitment to Michigan LPCs

The Michigan Mental Health Counselors Association (MMHCA) is dedicated to ensuring that Michigan LPCs are:

Fully informed about the Counseling Compact and its potential implications.
Engaged in discussions about how this change may affect their profession.
Represented in decision-making processes at the Counseling Compact Commission meetings.
Provided with educational opportunities and resources to adapt to industry changes.

Next Steps for Michigan LPCs

Educate Yourself: Review the MMHCA Compact Report and stay informed about state and national policy changes.
Engage with Your Professional Community: Join discussions with colleagues and advocate for fair policies that protect the integrity of the counseling profession.
Plan for the Future: Consider how these changes could impact your practice and client relationships, and explore ways to differentiate your services in a changing landscape.

Understanding these factors is critical for all Michigan LPCs as the profession continues to evolve.

MMHCA’s Role in Supporting Michigan LPCs

As a professional organization dedicated to Michigan’s mental health counselors, MMHCA is committed to:

Providing objective information on the Counseling Compact and its potential implications.
Engaging with Michigan LPCs to understand their perspectives and priorities through ongoing surveys and discussions.
Participating in Counseling Compact Commission meetings to monitor developments and advocate for the best interests of Michigan counselors.
Offering education and resources to ensure LPCs remain informed and prepared for industry changes.

Why Your Involvement Matters

Staying informed about the Counseling Compact is essential for every Michigan LPC. By reviewing the MMHCA Compact Report, counselors can make well-informed decisions about how this evolving framework may affect their practice and their clients.

We encourage all LPCs to engage in this conversation, review the findings of the MMHCA Compact Report, and consider becoming involved with MMHCA to ensure that Michigan counselors remain well-represented in these discussions.

📄 Download the MMHCA Compact Report for a full analysis.
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