Basically, the difference is one of severity. Coaching is for people who are functioning at an "OK" level, but they want to improve or enhance some area of their life. Examples may include work satisfaction, relationship improvement, defining life/career goals, or finding more happiness in their lives. Coaching issues are not diagnosable mental disorders and coaching services would not be reimbursable by health insurance.
Counseling, or psychotherapy, is usually sought by people who are not functioning at an "OK" level. They are under considerable distress and may be referred by a physician or other healthcare provider. Examples may include clinical depression, panic attacks, extreme anxiety or acute grief. Counseling issues are diagnosable mental disorders and are usually reimbursable by health insurance.
I am a provider for the following insurance panels: Blue Cross Blue Shield and Beacon Health Options.
My private pay fee is $125 per 50 minute session.