Does Insurance Cover Therapy in Ontario? What You Need to Know

One of the most common questions I hear from people considering therapy is: will my insurance cover this? It's a completely valid thing to want to know before booking — and the answer, while a little nuanced, is generally good news for most people.

Here's a straightforward breakdown of how insurance coverage for therapy works in Ontario.

The Short Answer: It Depends on Your Plan

Most extended health benefit plans in Ontario do include some coverage for psychotherapy or mental health services — but the amount, the providers they cover, and how you access that coverage varies from plan to plan. The most important thing you can do is contact your insurance provider directly and ask a few specific questions before assuming you're covered or not covered.

What to Ask Your Insurance Provider

When you call or log into your benefits portal, here's what to ask:

• Do my benefits include coverage for psychotherapy or mental health counselling?

• Does my plan cover services provided by a Registered Psychotherapist (RP)?

• What is my annual coverage limit?

• Do I have a deductible, and has it been met?

• Do I need a referral from my doctor to access these benefits?

That last question about credential type matters more than people realize. Some plans cover Registered Psychotherapists, while others only cover Psychologists or Social Workers. At Be Well Therapy Studio, I am a Registered Psychotherapist (RP) — so confirming that your plan covers RPs specifically will determine whether your sessions are eligible for reimbursement.

Direct Billing: What It Is and How It Works

Historically, most therapy clients in Ontario paid out of pocket and then submitted receipts to their insurance provider for reimbursement. While that option still exists, direct billing has made the process significantly easier for many clients.

At Be Well Therapy Studio, I offer direct billing through the TELUS eClaims portal, which means I can submit your claim directly to your insurance provider on your behalf — so you're not paying the full amount upfront and waiting to be reimbursed. Direct billing is currently available for clients with coverage through the following providers: Canada Life, Manulife, Sun Life, Desjardins, Green Shield Canada, ClaimSecure, Empire Life, Equitable Life of Canada, GroupHEALTH, GroupSource, Industrial Alliance, Johnson Insurance, Johnston Group, Manion, Maximum Benefit, and RWAM Insurance Administrators.

If your provider isn't on that list, you can still submit your receipts directly to your insurer for reimbursement after each session.

Is Therapy Tax Deductible in Ontario?

Yes — and this is something a lot of people don't know. If you pay for psychotherapy sessions out of pocket and they are not reimbursed by insurance, you may be able to claim those costs as a medical expense on your personal income tax return. This can add up to meaningful savings over the course of a year of therapy. Speak with a tax professional to confirm how this applies to your specific situation.

What About OHIP?

Psychotherapy services provided by a Registered Psychotherapist in a private practice setting are not covered by OHIP. OHIP does cover some mental health services — such as seeing a psychiatrist — but private therapy with an RP falls outside of that coverage. This is why extended health benefits and direct billing options are so important for making therapy accessible.

Good News: No More HST on Therapy

As of June 20, 2024, psychotherapy services provided by a Registered Psychotherapist in Ontario are exempt from HST, following the passing of Bill C-59. This means the rate you pay for your sessions is the rate you pay — no tax added on top.

Making Therapy Work for Your Budget

At Be Well Therapy Studio, I offer a range of session lengths — from 25-minute check-ins to 90-minute extended sessions — starting at $100. This flexibility is intentional, because I believe cost shouldn't be the reason someone doesn't get support.

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If you're unsure whether therapy fits your budget or whether your insurance will cover it, I encourage you to reach out. I'm happy to answer questions before you book, and a free 15-minute discovery call is always available to help you figure out if we're the right fit.