Abstract
The Australian health insurance industry has been critical of psychiatry. The data on patterns of claims which have been the focus for some of their concerns are reviewed. The evidence on the efficacy of psychotherapy is also reviewed. Psychotherapy has been shown to be an effective treatment for persons with incapacitating neurotic and personality disorders, a treatment too important to be endangered by dissent over health insurance payments. Proposals for a peer review process for long term psychotherapy are mooted in the expectation that agreement between the health insurance industry and psychiatry would benefit those patients in need of psychotherapy.