Is therapy covered by insurance in Canada? A guide to understanding your benefits package
When you’re weighing the decision to seek therapy, you don’t want the added burden of trying to figure out if a therapist is covered by insurance. The good news is that most Canadian extended health plans include some mental health coverage, and you generally don’t need a formal diagnosis to use it. The key point to know is that most plans determine coverage based on the therapist's designation. In this guide we will break this down in more detail.
What are extended health benefits in Canada?
Maybe you’ve heard this term but aren’t quite sure what it means and how it relates to therapy. Basically, extended health benefits are often underneath the paramedical services bucket within most insurance booklets. The inclusions within this services bucket vary depending on the insurer, however, most plans include health services not covered by provincial healthcare (OHIP, AHCIP, etc.).
Extended health benefits typically include things such as:
- Psychotherapy / counselling
- Massage therapy
- Chiropractic care
- Physiotherapy
- Naturopathy
- Acupuncture
- Osteopathy
- Speech therapy
Note that some health plans include mental health services in its own separate line with its own cap distinct from the general paramedical services, so it is worth checking your own plan for a standalone “mental health” or “psychological services” heading to check for your total available coverage cost.
Which insurance providers typically cover mental health support?
Most of the main insurance providers offer mental health services coverage, but details depend on the plan sponsor (university, employer, union, etc.). Your specific plan will describe the coverage in more detail including the cap and therapist designations that are covered.
This is also true for the therapy services offered through Layla. Common benefits providers that Layla's clients use to submit their therapy sessions for benefits coverage include: Manulife, Sun Life, Canada Life, Desjardins, Green Shield, Empire Life, RBC Insurance, Medavie Blue Cross, and more.
Therapist designations covered by most benefits plans
The general practice across Canadian insurers is that coverage is dependent on provincial registration/licensure. Therefore, a plan will reimburse for someone who is a registered or regulated member of a recognized professional college and/or association, such as CRPO, NSCCT and BCACC. This may feel confusing at first because designations vary depending on schooling and province, however, the registration is an important part of figuring out if your therapy provider is eligible to be covered under your benefits plan.
These designations are most commonly covered across Canadian benefits plans:
- Registered Psychologists. Titles include C.Psych (Ontario), R.Psych (Western provinces), or sometimes just listed as Psychologist.
- Registered Social Worker (RSW). RSW means they are registered, MSW is the degree of Masters of Social Work.
- Registered Psychotherapist (RP). This is an Ontario-specific designation, those with the “Qualifying” variant are completing registration requirements. Check your plan directly to confirm whether this variant is included.
- Registered Clinical Counsellor (RCC). Common in BC.
- Canadian Certified Counsellor (CCC). A national certification, accepted by many plans
- Registered Counselling Therapist (RCT). Used in some Atlantic provinces
Note that psychiatrists are medical doctors covered under provincial health plans (like OHIP, MSP, AHCIP, MSI) rather than extended health benefits. They typically require a referral from a family doctor, and Layla does not offer psychiatric services.
→ To learn more, take a look at our guide on the different types of mental health care providers in Canada.
What to check in your benefits plan for therapy coverage
Knowing which designation your plan covers is the first step to moving forward confidently, the next is understanding the terms and conditions of your coverage. Benefits packages can feel overwhelming to read through, so here are a few specific terms you can look for once you find the mental health or paramedical section:
To put these terms into context, according to the 2025 Benefits Canada Healthcare Survey, among plans that cover paramedical services, half (52%) set a maximum per practitioner type (average being $858), while 44% of plans use a single combined annual maximum for all practitioners listed below paramedical services (average being $1,462) [1].
This is why it’s important to check your individual plan and how much it covers per service type so you can move forward confidently about what is covered.
Once you know what your plan covers, it’s important to understand how you get reimbursed after a session.
How reimbursement works when direct billing isn’t an option
For many therapy providers, direct billing to insurance providers isn’t an option. This means that you pay for the service yourself then submit the receipt to get reimbursed. Here is what the process generally looks like:
- Pay for the session directly. You will cover the cost upfront.
- Receive a detailed receipt. This should have everything the insurers need to process a claim, including the therapist’s full name, professional designation and license number, date of service, and amount paid.
- Submit the receipt to your insurer. Most insurers accept submission through an online portal or app.
It’s important to know that processing times vary by insurer, so it’s worth checking your specific plan for expected reimbursement.
Does your student and university health plan cover therapy?
If you are a post-secondary student at a Canadian institution, you may have mental health coverage through your school’s student union health plan. These plans vary significantly by school, with some covering 80% of the fees up to $1,500 per year, while others have a cap based on maximum number of sessions [3][4]. The therapist designations covered under your plan can also differ school to school, so checking your package or reaching out to your student services department is advised.
View our detailed breakdown of student mental health coverage by universities and colleges across Ontario, Alberta, British Columbia, and Nova Scotia.
Finding a therapist who fits your coverage
Once you’ve understood who and what your plan covers, the next step is finding a therapist who is the right fit for you. At Layla, all of our therapists are licensed, registered mental health professionals who are covered by most benefits plans. After you fill out our intake form, you can discuss your needs and preferences in more depth with a care coordinator. You can share more about the type of coverage or designation requirements you’re working with so they can factor that into your therapist match.
Navigating your benefits shouldn't be another barrier to getting support. Once you know what your plan covers, finding the right therapist is one less thing to figure out on your own and we're here to help you take that next step, whenever you're ready.
Frequently asked questions
Are Registered Psychotherapists covered by extended health benefits plans?
In most cases, yes. Registered Psychotherapist (RP) is a recognized professional designation under many extended health plans in Ontario. As with any designation, it's worth confirming directly with your benefits provider since some plans list eligible titles explicitly.
Is therapy from a social worker covered by extended health benefits plans?
Most often, yes. Registered Social Workers (RSW) are a registered professional designation, which includes therapy under their clinical capabilities. Therapy provided by a social worker is covered under many extended health plans in Ontario. As with any designation, it's worth confirming directly with your benefits provider, since some plans list eligible titles explicitly.
How do I know if my employee benefits plan covers mental health support?
Employers may offer mental health coverage through a few different channels.
- Extended health benefits – which reimburse ongoing therapy up to an annual maximum.
- Health spending accounts (HSA) – which offer a set dollar amount you are able to get reimbursed for specific health expenses, which may include therapy services.
- Employee Assistance Program (EAP) – which typically provides a set number of short-term counselling sessions through a specific provider at no cost.
It’s worth noting there are limitations to take into consideration with EAPs as counselling is only covered through a specific provider and according to Canada Life, EAP session limits typically range from 3 to 8 sessions per year, though this varies by provider [2].
It's worth checking whether your workplace offers one or all of these coverage options, since they function differently and have different coverage types.
Is online or virtual therapy covered by benefits?
Yes, it often is, as long as your therapist holds an eligible, registered designation with a recognized college or association that is eligible under your specific plan, they are likely covered by your benefits plan. It’s important to know that designations and coverage vary by insurer, so it’s worth checking your specific plan for more details. What matters for reimbursement is how the receipt is structured as insurers require an itemized receipt with their name, designation, license number, and session date. Some virtual care models, particularly non-Canadian subscription-based platforms working with foreign therapists, do not issue this kind of per-session receipt, which can make reimbursement unlikely.
Layla provides itemized receipts that are designed for insurance providers to easily review and approve your therapy session for reimbursement. If you are needing assistance, or additional documentation, please reach out to our team, or your care coordinator directly.
Can you use a parent or guardian’s benefits plan to cover therapy?
Often yes, depending on your age and student status. Each plan differs, so it is important to check with your parent or guardian and review their benefit booklet’s definition of dependent children. However, most Canadian employer benefits plans follow these rules [5]:
- Under 21 – often covered as a dependent child regardless of student status.
- 21 to 24 or 25 – often covered if you are a full-time student at a recognized post-secondary institution, confirmed with the insurer annually.
The exact age cutoff and student requirements vary depending on the plan. Learn more about how insurers define dependents or how long you can stay on a parent’s health insurance.
If you are under 25 we encourage you to always check with your parent or guardian’s health care plan to ensure you are not missing out on available coverage for therapy.
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Finding the right support
If you require any immediate support, please reach out to a professional, or click here to explore our crisis and community resources. If you’d like to inquire about finding mental health support that’s right for you, a member of our team is happy to assist you. You can email us at contact@layla.care for any inquiries, or complete our intake form to reach out to a member of our care team.
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References and external links
[1] Benefits Canada Healthcare Survey 2025. (2025, December 10). Benefits Canada.Com. https://www.benefitscanada.com/microsite/benefits-canada-healthcare-survey-2025/
[2] What is an employee assistance program? (2024, October 23). Canada Life. https://www.canadalife.com/insurance/workplace-benefits/mental-health/employee-assistance-program.html
[3] Health Coverage. (2026). University of Ottawa Students” Union (UOSU) & Saint Paul University Student Association (SPUSA). https://uosu.alumo.ca/health
[4] Health Coverage. (2026). University of Toronto Students” Union (UTSU). https://utsu.alumo.ca/health
[5] Anandjit, J. (2026, April 21). Who Counts as a Dependent for Health Insurance in Canada? (H. Fleischer, Ed.). PolicyMe. https://www.policyme.com/health-insurance/who-can-be-a-dependent-on-health-insurance
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