A Guide to Mental Health Insurance Coverage in Canada
Learn how mental health insurance coverage works in Canada, what’s covered under public and private plans, and how to choose the right one for you.
What mental health insurance coverage looks like in Canada
Canada’s mental health coverage landscape blends public care with private options for ongoing wellness and mental health support. While provincial healthcare covers psychiatrists and emergency care, most mental health professionals, like registered psychotherapists and clinical counsellors, work in private practice and require out-of-pocket payment or insurance coverage.
1. Public coverage
- Visits to family doctors and psychiatrists are publicly insured. Hospital-based mental health services are also covered.
- Counselling or psychotherapy from non-physicians (such as psychotherapists, psychologists, and social workers) is generally not covered under provincial plans when delivered in a private practice. Patients usually pay out of pocket or use private insurance for this.
- Programs such as the Canadian Mental Health Association (CMHA) and various First Nations and Inuit health initiatives also help fill service gaps for underserved communities by offering free or low-cost counselling sessions and helplines.
2. Employer benefits
- If your employer offers health benefits, therapy may be covered under “paramedical” or “professional” benefits with annual maximums.
- Caps are typically anywhere between $300 and $500 for employer-based health insurance plans. This usually won’t cover a full course of therapy.
- Many employers include therapy under group benefits or an Employee Assistance Program (EAP), a short-term support service that offers confidential mental wellness resources, crisis counselling, and referrals to qualified mental health practitioners.
3. Individual health insurance plans
- Private extended health insurance can reimburse sessions with licensed mental health providers, typically with per-visit and/or annual caps.
The cost of mental health care in Canada
Therapy is not free in Canada. Public plans may cover physicians (psychiatrists) and hospital care, but they do not cover the costs of private-practice therapy with psychologists, psychotherapists, or social workers. Costs for these sessions range from $100 to over $300 per hour, depending on the type of practitioner.
Cost is a real access barrier to mental health coverage. According to our 2025 health coverage survey, 21% of Canadians reported delaying mental health specifically because of cost. CIHI reports that about 1 in every 3 Canadians who delay care is diagnosed with a related condition, meaning there’s a large group of people going without the care they need—particularly younger adults.
What provincial healthcare covers (and doesn’t) for mental health
Each province or territory administers its own public health insurance. Here’s what you can expect provincial health care to cover with respect to mental health:
What private health insurance covers for mental health
Private health insurance in Canada plays a vital supplemental role for mental health, especially when people need therapy, counselling, or ongoing support not covered by publicly funded plans. That said, not all plans are equal. Coverage depends on plan tier, annual maximums, provider eligibility, and out-of-pocket costs.
Be sure to read the details of your policy or group plan to understand what’s covered.
In short, private plans fill the therapy gap left by public health care, but coverage is usually either modest or capped annually. Those who attend regular therapy or need ongoing support benefit most from higher-tier private health insurance plans or employer-provided plans with large annual limits.
How much does mental health insurance coverage cost?
PolicyMe offers several health insurance plans with mental health coverage. While there are a range of plans, you can generally expect annual coverage limits of $500 to $1,300.
*Cost is based on the Canada-wide average for policyholders aged 21–54 in Canada as of November 1, 2025.
Best mental health insurance coverage in Canada
Here are our picks for the best private insurance plans with mental health coverage.
1. PolicyMe: Economic
* Average monthly premium for adults aged 21–44 in Ontario.
The plan: Great variety of coverage for the least cost.
- 50% reimbursement up to $600/year
- $500/year for mental health services
Why we think it’s the best: PolicyMe’s Economic plan delivers one of the most affordable entry points to comprehensive mental health coverage in Canada. You get solid reimbursement for key paramedical services, without the inflated premiums seen from other insurers. Its $500 annual mental health limit is competitive for a base-tier plan, and the 50% reimbursement rate across other services makes it an excellent value choice for individuals or couples who need reliable protection.
Pros:
Cons:
2. GreenShield Insurance: ZONE 7
* Average monthly premium for adults aged 21–44 in Ontario.
The plan: Extremely robust overall coverage, but at a high cost.
- $750 per person per year, combined
- 4 hours of virtual counselling (2 for individual therapy, 2 for couples therapy) per person per year
- More benefits are available under the Psychology benefit plan
Why it made our list: This plan earns a spot for offering wide-reaching coverage across health, dental, and vision. It’s a solid choice for people who want a comprehensive benefits package in one plan. While the plan is pricey, its built-in mental health benefits are flexible, with the option to layer on additional coverage.
Pros:
Cons:
3. Canada Life: Select elite without dental
* Average monthly premium for adults aged 21–44 in Ontario.
The plan: Decent coverage at a decent rate, but customer service reviews can vary.
- 100% coverage up to $50 per visit, maximum of $500 per year
- Additional mental health coverage is available for an additional cost
Why it made our list: Canada Life’s Select Elite plan is one of the few mid-range options offering reimbursement on each therapy visit. It’s a good fit for individuals who want predictable, easy-to-claim benefits without comprehensive dental care. That said, its annual limits are modest for those who require regular mental health counselling, and some customers note slow claims processing and customer responses.
Pros:
Cons:
How to choose the right mental health insurance plan
Picking the right mental health insurance plan comes down to balancing your therapy needs with what you’re actually paying for. Here’s how to evaluate your options:
1. Assess your current and expected therapy usage: Think about how often you see, or plan on seeing, a therapist. Someone attending weekly sessions will need higher annual coverage than someone who checks in once or twice a year.
2. Compare coverage limits to real session costs: Private-practice therapy can cost anywhere from $120 to $300+ per session. If your plan only covers $500 annually, that limits you to two to four visits per year.
3. Check for coinsurance, deductibles, and waiting periods: Some plans will only reimburse a percentage of the cost, or may have waiting periods before benefits kick in. Read the fine print.
4. Don’t overpay for unused coverage. If you don’t expect to use other paramedical benefits, such as massage therapy or chiropractic care, a lower-tier plan may be the most cost-effective option. On the other hand, frequent therapy users or families needing flexibility will benefit from more robust plans.
Choose a plan that matches your actual mental health needs. The best plan is the one that makes ongoing care sustainable without overextending your budget.
Is mental health insurance worth it?
Whether mental health insurance is worth it depends on how often you use it and what kind of support you need. For some, it can quickly pay for itself; for others, occasional therapy sessions might not justify the monthly cost of a private health insurance plan.
Mental health insurance is most worthwhile for people in regular therapy or managing chronic conditions. For those who just check in with a therapist from time to time, paying out of pocket likely makes the most sense.
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Helene Fleischer is Content Marketing Manager at PolicyMe, with 9 years in content marketing and 4 in Canada’s insurance industry. She works with skilled writers and licensed insurance advisors to create useful resources that help Canadians navigate insurance decisions with confidence and clarity.
Helene Fleischer is Content Marketing Manager at PolicyMe, with 9 years in content marketing and 4 in Canada’s insurance industry. She works with skilled writers and licensed insurance advisors to create useful resources that help Canadians navigate insurance decisions with confidence and clarity.
Prices listed on this page are based on information available as of October 2025. The prices shown are for general reference only and may vary based on factors like your age, location, and product selection.