Therapy Costs and Insurance Coverage in Canada: A GreenShield Guide

{{highlight-box}}

Key takeaways

• In Canada, provincial health plans generally don’t cover private therapy – but workplace and group benefits plans, personal health insurance, and employee assistance programs (EAPs) often cover some or all of the cost.
• How much you pay depends on your plan: the type of coverage, the annual maximum, and which providers are eligible.
• If you pay out of pocket, you may be able to lower the cost through the federal Medical Expense Tax Credit, and many therapy services are exempt from GST/HST.
• With GreenShield+, you can start with a free 15-minute consultation (individual therapy). If you have coverage, you can use your benefits plan to help you cover the cost of your therapy. 

{{/highlight-box}}

This guide explains how therapy coverage works in Canada, how to use a benefits plan to pay for sessions, and how to lower your out-of-pocket costs.

Does insurance cover therapy in Canada?

In most cases, yes – but not through your provincial health plan. Provincial health plans in Canada generally cover psychiatrist visits with a physician referral and hospital-based mental health services, but they don’t cover therapy with psychologists, registered social workers, or registered psychotherapists in private practice.

For private therapy, many Canadians rely on one of four sources of support: a workplace or group benefits plan, a personal health insurance plan, an employee assistance program, or the federal Medical Expense Tax Credit when they pay out of pocket.

‍

Coverage varies by insurer, plan sponsor, policy, contract and province. Always review your plan documentation and, if you have questions about your coverage, contact your advisor or insurer.

‍

What kinds of therapy coverage are there?

Therapy coverage in Canada usually comes from one of these sources:

• Workplace or group benefits. Many Canadians with mental health coverage get it through a group benefits plan – usually from an employer, but sometimes through a union, a professional or student association, or a retired-employees association. Therapy may appear as part of a broader “paramedical” category (alongside services like physiotherapy and massage), as its own separate mental health benefit, or through a health care spending account.
• Personal health insurance plans. Canadians without group coverage can buy a personal health insurance plan directly. Mental health coverage levels vary widely by plan and by insurer.
• Employee assistance programs (EAPs). EAPs are short-term, employer-funded counselling programs – typically a set number of sessions per issue or per year. They’re confidential, separate from your paramedical benefits, and usually designed to address specific concerns rather than open-ended therapy.
• Health care spending accounts (HCSAs). Some plans include an HCSA – a set amount of money you can put toward eligible health expenses, including therapy, often on top of your regular benefits.
• Spouse or family coverage.  Even if you don’t have coverage of your own, you may be covered under a spouse or parent’s plan. It’s worth checking to see if you have coverage through a family member and whether you’re eligible for reimbursement. 

‍

How much therapy does coverage pay for?

‍

How much your plan covers depends on how it’s set up. Most plans cover therapy up to an annual maximum, and many reimburse a percentage or a set amount of each session rather than the full cost.

• Plans package coverage in different ways – through an EAP, a paramedical benefits umbrella, a health care spending account (HCSA), or a standalone mental health benefit. Some plans use more than one.
• Eligible providers vary by plan. Psychologists are widely covered; social workers and registered psychotherapists are increasingly covered as separate categories on newer plans.

‍

How to check what your plan covers

Your benefits booklet (or your plan’s member portal) is the fastest way to confirm what you’re entitled to. Look for four things:

•  The paramedical or mental health category, and which provider types it lists (psychologist, social worker, psychotherapist).

•  Your annual maximum – the most the plan pays per person, per year.

•  The reimbursement rate – the percentage or amount of each session the plan covers, and any per-visit cap.

•  Whether a referral is required before the plan will pay.

GreenShield member? Log in to your account to check your benefits.

‍

Coverage usually falls into one of three scenarios:

How do you use your coverage to pay for therapy?

There are two common ways to get therapy paid for through a benefits plan:

• Pay and submit. You pay for the session up front and submit a claim to your benefits provider for reimbursement, using the receipt provided after your session.
• Direct billing. Some plans and providers can bill directly, so you only pay any remaining balance.

Your receipt should include the information most plans require for a claim: the therapist’s name and credentials, the date of service, the session length, and the amount paid.

‍

Sponsored hours and EAP hours

Some workplace plans include sponsored hours – therapy credits funded by your employer or insurer that you can use to pay for sessions directly, without a credit card, until they run out. EAP programs work similarly, offering a set number of counselling sessions at no cost to you.

‍

Can you claim therapy on your taxes?

Even if your benefits plan doesn’t cover the full cost, you may be able to claim therapy as a medical expense. The Canada Revenue Agency (CRA) lets Canadians claim eligible medical expenses, including therapy, through the Medical Expense Tax Credit (METC).

Here’s how it works:

• Therapy qualifies when it’s provided by a CRA-recognized medical practitioner. Recognition depends on your province – in most provinces this includes psychologists and social workers, while psychotherapists and counselling therapists are recognized in specific provinces.
• You can claim eligible expenses for yourself, your spouse or common-law partner, and your children under 18 (line 33099), or for other dependents such as a child 18 or older or a parent who depends on you (line 33199).
• Eligible expenses count above an income-based threshold set by the CRA each year, must fall within a 12-month period ending in the tax year you’re filing for, and need supporting receipts – so keep them on file.
• Who can’t claim. You can’t claim any portion of a cost that was reimbursed (for example, the share your benefits plan already paid), and fees paid to a practitioner whose designation isn’t recognized for the METC in your province don’t qualify.
  
  

For current thresholds and the full list of authorized medical practitioners by province, see the CRA Medical Expense Tax Credit pages at canada.ca. 

This section is general information only and isn’t tax advice – always follow current CRA guidance, and for complex situations consider consulting a tax professional.

{{highlight-box}}

GST/HST exemption for therapy

Certain qualifying psychotherapy and counselling therapy services may be exempt from GST/HST. This is separate from the tax credit above: it means qualifying sessions shouldn’t include sales tax. The two follow different rules, so it’s worth checking both.

{{/highlight-box}}

Lowering the cost of therapy

Therapy in Canada is available with or without insurance – and costs can vary widely. Depending on your situation, there are several ways to help manage or reduce out-of-pocket expenses:

• Use any coverage first. If you have sponsored hours through your own plan – or a spouse’s or family plan – use them before paying out of pocket.
• Claim it at tax time. Keep your receipts and claim eligible therapy through the Medical Expense Tax Credit when you file your return.
• Explore lower-cost and free options:
  
  • Canadian Mental Health Association (CMHA) branches run free or low-cost programs that vary by region.
  • Community health centres and walk-in counselling clinics in many cities offer free or sliding-scale care.
  • University-affiliated clinics, where supervised graduate students provide therapy at reduced rates.
  • Provincial mental health support lines for immediate, free phone or chat support.
• Start with a consultation. Many providers offer a free or reduced first consultation, so you can find the right fit before committing to a paid session. GreenShield offers a free 15-minute consultation for individual therapy.  

‍

Getting therapy through GreenShield

How you pay for therapy through GreenShield depends on whether you’re new to GreenShield or already have a plan through an employer or insurer.

If you’re new to GreenShield

{{highlight-box}}

What a therapy session costs through GreenShield Health 

In 2026, GreenShield Health therapy is $135 per 60-minute session – the same rate no matter where you live or which practitioner you see. See the Pricing guide for how that compares to typical therapy costs in Canada.

{{/highlight-box}}

• Free consultation. For individual therapy, every new therapist match begins with a free 15-minute consultation, so you can find the right fit before you pay.
• Paying for sessions. You pay out of pocket, and you can submit your receipt to your group/workplace benefits plan, or insurer, or EAP provider reimbursement – or claim it through the Medical Expense Tax Credit at tax time.

If you have a GreenShield plan

• Sponsored hours. If your employer or plan provides sponsored hours, you’ll see them under the Counselling section of your GreenShield+ account, and they’re used first.
• Personal health insurance plans. Every GreenShield personal health insurance plan includes four hours of virtual counselling per person per year – two hours of individual therapy and two hours of couple’s therapy. Beyond those hours, additional therapy may be eligible for coverage under the Paramedical benefit included in the plan.
• Paying out of pocket. Once your sponsored or plan-covered hours are used up, add a credit card to continue with paid sessions.
• Already a GreenShield member? Log in to your account to check your benefits and book a session.