Health Insurance for Mental Health and Psychology

Select who needs health insurance for mental health and psychology and start comparing today.
Psychology and mental health care is covered by medium-tier to comprehensive extras policies.
Medicare covers up to 10 sessions per year (with a valid mental health care plan and referral letter from your GP), but after that, you must pay the full price of a session.
Without insurance (and once you’ve used up your Medicare sessions), you can pay anywhere between $180-$250+ per 1 hour session.
2 month waiting period and annual limits apply.
Psychology and mental health care is covered by medium-tier to comprehensive extras policies.
Medicare covers up to 10 sessions per year (with a valid mental health care plan and referral letter from your GP), but after that, you must pay the full price of a session.
Without insurance (and once you’ve used up your Medicare sessions), you can pay anywhere between $180-$250+ per 1 hour session.
2 month waiting period and annual limits apply.

Take Care of Your Mental Well-Being & Find the Right Health Insurance Cover in Australia For Your Needs

We all have down days, but if you’re experiencing more bad days than good days, it might be a sign something bigger is going on. Reaching out to a mental health professional to get the mental health support you need is crucial, but the costs can put a lot of Australians off accessing the mental health services they need.

Understanding the available psychology support is key, and we'll guide you through the process, breaking it down step by step. From [hospital cover|/plans/] to outpatient services, we'll explore how different insurance policies can cater to your mental health needs.

Remember, your mental health matters, and finding the right insurance coverage shouldn't be a barrier to accessing the support you deserve. So, let's embark on this journey together, uncovering the world of mental health insurance and equipping you with the knowledge to make informed decisions tailored to your needs. Ready to take the first step? Let's do it together.

Health Insurance Cover Options for Mental Health & Psychology

When it comes to prioritising your mental well-being, finding the right health insurance cover is crucial.

Fortunately, many insurance providers offer comprehensive coverage for psychology services through their extras policies.

What's even better is that these policies often include additional benefits like dental, optical, and natural therapies. So, you can take care of your overall health while addressing your mental health needs.

One of the advantages of opting for private health insurance is the convenience it offers. Unlike accessing psychology support through Medicare, you don't need to go through the process of seeing a GP, obtaining a referral, or creating a mental health treatment plan. Instead, you can directly connect with a psychologist and embark on your mental health journey without any unnecessary delays.

Choosing the Right Level of Cover

When considering private health insurance, it's important to choose the right level of coverage that suits your needs. Each plan comes with a set dollar limit that determines the amount you can claim for psychology services throughout the year.

By selecting a higher level of coverage, you can potentially increase your annual claim limit, providing you with more flexibility and support for ongoing mental health needs.

Beyond the financial aspects, private health insurance offers additional advantages. You have the freedom to choose from a wide network of psychologists, giving you the opportunity to find a professional who aligns with your specific needs and preferences.

Some insurers even provide higher percentage coverage when you visit psychologists within their network, potentially reducing your out-of-pocket costs.

Accessing Psychology Services Through Medicare

If you're in Australia and seeking affordable mental health support, the Better Access to Mental Health Care initiative by the Australian government is a great option.

Through Medicare, you can claim up to 10 psychology sessions per year.

While visiting a general practitioner (GP) is a requirement, this initiative can be combined with private health insurance for additional sessions, providing you with comprehensive coverage.

To help you navigate the process, here's a simple step-by-step guide:

  1. Schedule a visit to your GP: Start by making an appointment with your GP. During this consultation, your GP will assess your mental health and work with you to create a personalised mental health treatment plan.
  2. Obtain your mental health treatment plan: Your GP will collaborate with you to develop a treatment plan tailored to your specific needs. This plan may include a combination of approaches such as medication, psychiatry, psychology, and wellness programs like yoga, ensuring comprehensive care for your well-being.
  3. Acquire a referral: If your GP determines that psychology sessions are suitable for your situation, they will provide you with a referral. This referral is necessary to be eligible for the Medicare rebate.
  4. Schedule sessions with a psychologist: With your referral in hand, you can now proceed to book sessions with a psychologist. Initially, you will be entitled to up to six sessions as part of your first "course of treatment."
  5. Revisit your GP if needed: If you find that you are not connecting with your psychologist or require additional sessions, you can consult your GP. They can provide a referral to another psychologist or recommend another course of treatment, granting you up to four more sessions.

Understanding the Medicare Rebate

Under the Better Access initiative, Medicare offers rebates for psychology sessions. You can receive $84.80 per session lasting 50 minutes or more with a general psychologist, and $124.50 for a session with a clinical psychologist, as long as you are on a mental health treatment plan.

If the actual session cost exceeds these rebate amounts, you will be responsible for paying the difference.

When booking your appointment with a psychologist, it's essential to inquire about the fees involved. Knowing the upfront costs will help you anticipate any out-of-pocket expenses you may incur.

Medicare vs. Private Health Insurance: Which Option is Best?

When it comes to choosing between Medicare and private health insurance, there are advantages and considerations for both. But here's the good news – you can actually make the most of both systems without any hassle.

Whether you've used your private cover or Medicare, you won't be denied coverage from either. So, in most cases, having private health insurance is a no-brainer.

Here are some reasons why private cover makes sense:

  1. If you only need a few sessions: If you're dealing with a minor issue like work-related stress and require just a couple of therapy sessions, Medicare can work for you. However, private health insurance offers added convenience. You can skip the step of visiting your GP for a referral or treatment plan and go directly to the therapist, ensuring a more discreet experience.
  2. If ongoing therapy is necessary: Medicare restricts you to a maximum of 10 sessions per year, which is less than one session per month. On the other hand, depending on your policy, private insurance may cover anywhere from 2 to 5 sessions. The great part is that you can utilise both Medicare and private insurance consecutively in any order. This means you can receive the ongoing treatment you need while saving a significant amount of money in the process.
  3. If you're unsure about the number of sessions required: In this situation, choosing the Medicare option and keeping your private cover handy is a smart move. If you find that you need more than 10 sessions, you can easily tap into your private insurance. Even if you don't require the additional sessions, your private cover can still offer considerable savings on other essential extras like your biannual dental cleanings.

Things to Know When Using Private Psychology Cover

When comparing health insurance policies, it's important to look beyond the price tag and consider the overall value offered. To ensure you make an informed decision, pay close attention to how insurers handle the following key factors:

  1. Annual Limits: Take note of the benefit limits specified in the policy. These limits represent the maximum amount you can claim each year for services such as psychology and dental. In some cases, these services may have separate limits (e.g., $300 for psychology and $300 for dental), while other policies may offer combined limits (e.g., $600 to be used for any covered services). Policies with combined limits often provide greater flexibility and can be a preferred choice.
  2. In-Network versus Out-of-Network Providers: Extras cover typically reimburses a percentage of each therapy session, with you covering the remaining cost. It's essential to understand whether an insurer offers higher reimbursement percentages for sessions with psychologists within their network. While choosing in-network providers can lead to potential savings, it's crucial to consider the size and availability of the network and weigh the benefits accordingly.
  3. Waiting Periods: If you're considering a new policy, be aware that waiting periods may apply before you can start claiming benefits for psychology treatments. However, with diligent research, you may come across special offers that waive waiting periods for certain treatments, including psychology. Keep an eye out for these opportunities to access coverage sooner.

Does Health Insurance for Mental Health and Psychology Cover Hospital Stays?

In Australia, private health funds generally provide coverage for mental health services, although the extent of coverage can differ based on the type and level of policy you have. Typically, psychology services are covered under extras cover, while treatment in psychiatric or rehabilitation facilities is more likely to be covered under hospital policies.

However, it's crucial to review the details of your specific policy to understand what is included. Checking with your health fund directly will give you a clear understanding of the mental health coverage provided by your policy. If you don't currently have private health insurance, it might be worthwhile to explore policies that offer some level of mental health coverage to ensure you have the necessary support in place.

If you have a Hospital policy, you’ll typically be covered for hospital admittance for the treatment of mental health issues and hospital psychiatric services, including:

  • Psychiatric disorders, such as schizophrenia.
  • Substance abuse disorders, including drug, alcohol, and gambling addictions.
  • Personality disorders, like paranoia.
  • Psychotic disorders, such as schizophrenia.
  • Eating disorders, including bulimia and anorexia.
  • Mood disorders, such as depression, bipolar disorder, and postpartum depression.
  • Anxiety and panic disorders, like panic attacks and obsessive-compulsive disorder.
  • Mental health problems related to trauma, such as post-traumatic stress disorder (PTSD).

This might include in-hospital stays at a private hospital, but this depends on your level of cover.

Could You Benefit From Counselling Services?

Psychology, as a form of professional counselling and therapy, plays a crucial role in addressing a wide range of mental health conditions. Whether it's a diagnosed mental illness like bipolar disorder or temporary challenges such as work-related stress, trained clinical psychologists are equipped to provide support and guidance.

Here are some of the conditions that psychologists can assist with:

  • Bipolar disorder and other diagnosed mental illnesses.
  • Work-related stress and burnout.
  • Anxiety disorders, including generalised anxiety, social anxiety, and phobias.
  • Depression and mood disorders.
  • Post-traumatic stress disorder (PTSD) and trauma-related issues.
  • Obsessive-compulsive disorder (OCD) and related compulsive behaviours.
  • Eating disorders, such as anorexia nervosa and bulimia.
  • Substance abuse and addiction.
  • Relationship issues and couples therapy.
  • Grief and bereavement counselling.
  • Self-esteem and confidence-building.
  • Anger management and emotional regulation.


Does mental health insurance cover treatments outside of hospitals?

Yes, mental health insurance typically covers treatments outside of hospitals as well. This includes outpatient therapy sessions, consultations with psychologists or psychiatrists in their private practices, and other mental health support services.

What support services are covered by mental health insurance?

Mental health insurance can cover a range of support services, including therapy sessions, counselling, psychiatric consultations, and rehabilitation programs. The specific coverage may vary depending on the policy and level of coverage.

What does the "two months" refer to in mental health insurance?

The "two months" typically refers to the waiting period before you can claim benefits for mental health services under your insurance policy. During this period, you may not be eligible to receive coverage for mental health treatments.

Does private health insurance cover telehealth appointments?

Some health insurers offer telehealth services to their members, but your eligibility will depend on your health fund and level of cover.

Where can I go if I need free mental health support?

If you need support right now, you can access services like Beyond Blue (1300 22 4636) or Lifeline (13 11 14) for free at any time.