How to use private health insurance for psychology sessions

If you need extra help to navigate challenges in life, seeing a psychologist can be a good source of support. According to ABS data, in 2024-25 17.3% of Australians saw a health professional for mental health, with 8.5% seeing a psychologist. But sessions with a psychologist aren’t cheap, with the Australian Psychological Society suggesting 45-60 minute sessions cost around $330 for 2026-27. If you’re considering starting therapy, your private health insurance might be able to reduce the cost of sessions. You’ll need to have Extras Cover that includes Psychology.

It’s important to know that you can’t use private health insurance for psychology sessions that are subsidised by Medicare. So if you have a Mental Health Treatment Plan, you can only use Extras Cover to pay the out-of-pocket costs after you’ve used up your Medicare-subsidised sessions. This timeline graphic shows you how:

Here are the 3 criteria to check before you claim psychology on private health insurance.  

1. Limits 

Extras Cover doesn’t pay the whole cost for your psychology session. Some policies will pay a percentage per appointment, say 50%. Some will pay a set amount per session. And there’s an annual limit – once you hit that, you can’t claim again until your limits reset (usually at the start of the calendar year, but some policies reset at the start of the financial year). Check your policy to see how limits are applied and when they reset. 

2. Waiting periods 

Most Extras Cover policies have a waiting period of 2 months for psychology claims on new policies. The good news is that unlike Hospital Cover, you won’t have longer waiting periods for pre-existing conditions on Extras Cover. 

3. Provider requirements 

Many health insurers have requirements for the psychologists they’ll accept claims from. Your psychologist will need to be: 

• A member of a professional organisation 

• Endorsed by the Psychology Board of Australia 

• Meet your insurer’s conditions, e.g. being a recognised provider.  

Contact your insurer or check your policy to find out if any conditions apply. It’s also a good idea to check with the psychologist about their health insurance payment terms and processes. Some might have HICAPS machines that will process your claim on the spot. Others will issue you a receipt you can use to claim through your insurer’s website or app. 

Is Extras Cover for psychology worth having? 

It depends on the policy you choose, how often you see a psychologist and your budget. In general, for an Extras Cover policy to be good value, you need to get back more in claims than you spend in premiums. That might be difficult to do with psychology sessions alone, but if you’re also using your policy to claim on other treatments, such as dental check-ups and physiotherapy, it’s more likely you’ll be getting good value for your premiums.  

When choosing a policy, we recommend you do the maths to compare your premiums to how much you can get back. A $34.70/month policy will cost you $416.40 a year. If you use up your limits on psychology, you’ll get $540 back a year, leaving you $132 better off. To make sure your Extras Cover policy is worth it, you need to spend less on premiums than you’ll get back in claims. 

How to find the best private health insurance for psychology 

You can search every policy from every insurer in Australia in minutes, for free, using the healthslips.com.au calculator. All results are listed without commercial bias, and without having to enter your name or contact details. Fast, free and reliable – try the calculator and see how much money you could save.  

Health insurance for psychiatric hospitalisation 

If you’re experiencing a more serious mental health issue and need psychiatric hospitalisation, you can use your Hospital Cover policy for private treatment if you have a Gold tier policy. If you have a lower tier policy, you can upgrade and get immediate access to psychiatric hospitalisation cover without having to serve waiting periods (an option only available once in your lifetime). Find out more about psychiatric hospitalisation in our blog.  

Getting support 

If you’re going through tough times, you can contact these support services for free at any time: 

• Beyond Blue 1300 22 4636 

• Lifeline 13 11 14 

healthslips.com.au does not provide general or personalised advice. Your particular circumstances are likely to impact the accuracy, completeness and relevance of the information or results. Take this into account before making a decision and talk to an expert for financial advice. 

Trudie McConnochie

Writer and Researcher

Knowledge is power – that’s the guiding principle behind everything Trudie writes, and it’s a philosophy she brings to her work at healthslips.com.au. By breaking down complex information into easy-to-understand blogs and stories, she aims to empower Australians to make the best choices and an informed decision around private health insurance.

Trudie understands firsthand some of the complexity of private health insurance having moved to Australia from New Zealand and having to navigate a vastly different public healthcare system and health insurance structure.

Trudie holds a Bachelor of Communication Studies (journalism major) from the Auckland University of Technology.

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