Does Insurance Cover Therapy in Ontario? A Clear Guide to Costs and Coverage

One of the most common reasons people delay therapy is cost. People often wonder: How much will this cost? Will my benefits cover it? What happens if I have to pay out of pocket?

Those are reasonable questions. In Ontario, the answer depends on the type of provider, your insurance plan, and whether you are using publicly funded services or private therapy. Here is a clear, practical guide to help you understand the main options.

Does OHIP Cover Therapy in Ontario?

In most cases, OHIP does not cover private therapy with Registered Psychotherapists, psychologists, or social workers. These services are usually paid through extended health benefits or out of pocket.

OHIP does cover medically necessary services provided by doctors, including family physicians and psychiatrists. Some publicly funded mental health services may also be available through hospitals, family health teams, community agencies, youth programs, or other government-funded pathways.

A psychiatrist is a medical doctor, so appointments with a psychiatrist are generally publicly funded when you are referred and the service is medically necessary. In practice, many psychiatry appointments focus on assessment, diagnosis, medication, and treatment planning, although some psychiatrists also provide psychotherapy.

Private therapy is different. It is often accessed more directly and may be available sooner, depending on the clinician or clinic, but it is not usually paid for by OHIP.

Does Extended Health Insurance Cover Therapy?

Extended health benefits are often the most common way clients offset the cost of private therapy. Many plans include some coverage for mental health services, but the details vary significantly.

The most important thing to check is which provider types your plan covers. Some plans reimburse sessions with a Registered Psychotherapist. Others only list psychologists or social workers. Some plans use broader wording such as mental health practitioner, counselling, psychotherapy, or psychological services.

You can usually find this information in your benefits booklet under headings such as:

• Paramedical services
• Psychological services
• Mental health
• Counselling or psychotherapy

If the wording is unclear, call your insurer and ask directly:

“Does my plan reimburse sessions with a Registered Psychotherapist registered with the College of Registered Psychotherapists of Ontario (CRPO), and what is my annual maximum?”

Annual coverage limits vary widely. Some plans cover a few hundred dollars per year, while others cover several thousand. Some plans also use a health spending account rather than a separate therapy maximum.

How Reimbursement Usually Works

At Life Seasons Counselling, clients pay for the session and receive a detailed receipt that can be submitted to their insurer for reimbursement. This is common in private practice, although some clinics may have different billing arrangements.

A therapy receipt typically needs to include the therapist’s name, registration information, date of service, type of service, amount paid, and clinic information. Insurer requirements vary by plan, but this is the kind of information most insurers request.

At our clinic, receipts include the therapist’s CRPO registration information so clients can submit claims through their insurer’s app, website, or claim form.

GST/HST Exemption for Psychotherapy Services

A helpful change came into effect on June 20, 2024. Under CRA rules, psychotherapy and counselling therapy services that meet the required conditions are exempt from GST/HST.

For clients in Ontario, this means eligible psychotherapy services are no longer charged the additional 13% HST that previously applied to many Registered Psychotherapist services. For our clinic, the posted session fee is not subject to HST.

Tax rules can change, and not every counselling-related service from every provider is automatically exempt. For most clients seeing a Registered Psychotherapist in Ontario, however, the GST/HST exemption has reduced the direct cost of private therapy.

Therapy and Your Taxes: The Medical Expense Tax Credit

If you pay for therapy out of pocket, some of those costs may be eligible for the Medical Expense Tax Credit on your Canadian tax return. The Canada Revenue Agency recognizes Registered Psychotherapists in Ontario as authorized medical practitioners for medical-expense purposes.

In general, you can only claim eligible medical expenses that were not reimbursed by insurance. The amount you can claim also depends on CRA’s medical-expense rules and annual threshold, which is based on your income and the indexed federal limit for that tax year.

Keep your receipts and speak with a qualified tax professional about your own situation. This article is general information only and should not be treated as tax advice.

What Does Therapy Cost in Ontario?

Private therapy fees in Ontario often fall somewhere between about $150 and $250 per 50-minute session, depending on the practitioner’s training, credentials, experience, location, and type of service.

At our Kanata practice serving the Ottawa area, sessions are currently:

• Isaac Davis, Registered Psychotherapist: $180 per session
• Arden Sabourin, Registered Psychotherapist (Qualifying): $160 per session

We also keep a limited number of reduced-fee spots available when possible.

The full out-of-pocket cost will depend on your benefits coverage, whether you have already used your annual maximum, and whether any unreimbursed amount qualifies for a medical expense claim at tax time.

How to Make Therapy More Affordable: A Practical Checklist

1. Check your benefits booklet for mental health, counselling, psychotherapy, psychological services, or paramedical coverage.
2. Confirm whether Registered Psychotherapists registered with CRPO are covered.
3. Ask about your annual maximum, per-session limit, deductible, and whether the plan resets at the calendar year or another date.
4. Ask the clinic for detailed receipts with registration information. At Life Seasons Counselling, these will be provided.
5. Submit receipts through your insurer’s app, website, or claim form.
6. Keep receipts for tax purposes in case your unreimbursed expenses qualify for the Medical Expense Tax Credit.
7. Ask about reduced-fee or sliding-scale spots if cost is a barrier.

If You Are Unsure About Cost or Coverage

Cost is a valid concern. Many people assume therapy is out of reach before they have checked their benefits, HST status, or possible tax treatment. It can be helpful to get clear information before deciding what is realistic for you.

If you are considering therapy at Life Seasons Counselling, a free 20-minute consultation can be a useful place to ask questions about fees, receipts, reimbursement, and whether our services are a good fit.

We cannot confirm your specific insurance coverage for you, but we can explain how our receipts work and what information you may want to ask your insurer.

Frequently Asked Questions

Does OHIP cover therapy in Ontario?

OHIP does not generally cover private therapy with Registered Psychotherapists, psychologists, or social workers. It does cover medically necessary services provided by doctors, including family physicians and psychiatrists. Some publicly funded mental health services may also be available through hospitals, community agencies, family health teams, youth programs, or other government-funded services.

Is therapy with a Registered Psychotherapist covered by insurance?

Often, yes — but it depends on your specific plan. Many extended health plans reimburse sessions with Registered Psychotherapists registered with CRPO, while others only list psychologists or social workers. Check your benefits booklet or call your insurer to confirm.

Is there tax on therapy in Ontario?

For eligible psychotherapy services, no HST is added. As of June 20, 2024, psychotherapy and counselling therapy services that meet CRA conditions are exempt from GST/HST. At Life Seasons Counselling, the posted session fee is not subject to HST.

Can I claim therapy on my taxes?

Fees paid to a Registered Psychotherapist in Ontario may qualify as eligible medical expenses under the Medical Expense Tax Credit, as long as they meet CRA rules and were not reimbursed by insurance. Keep detailed receipts and speak with a qualified tax professional about your own situation.

How much does therapy cost in Ottawa?

Private therapy in Ontario often ranges from about $150 to $250 per 50-minute session. At our Kanata practice serving the Ottawa area, sessions are currently $160 to $180, with a limited number of reduced-fee spots available when possible.

Taking the Guesswork Out of Therapy Costs

Therapy is an investment, and it is reasonable to want clarity before starting. Between extended health benefits, the GST/HST exemption, and possible tax treatment for unreimbursed expenses, the actual cost may be lower than it first appears.

If cost or coverage is the main barrier, start by checking your benefits and asking clear questions. A consultation can also help you understand what therapy at our clinic would look like before you make a commitment.

Important note: This article is general information only and is not financial, tax, legal, or insurance advice. Coverage varies by plan. Confirm details with your insurer, and speak with a qualified tax professional about your own situation.