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What’s the best private health insurance for mental health?
The best private health insurance for mental health will depend on whether you need support for inpatient hospital care, ongoing therapy sessions, or both. Mental health treatment in Australia is typically split between Hospital cover (for inpatient psychiatric care) and Extras cover (for psychology, counselling and related therapies outside hospital).
If you’re looking for cover for anxiety, depression, eating disorders or other serious mental health conditions that may require a hospital stay, you’ll need to choose a Hospital policy that includes psychiatric services. These are usually only included on Gold Hospital cover. It’s important to note that psychiatric services are a restricted service on lower-tier policies (Basic, Bronze and Silver) – meaning you may only be covered for treatment in a public hospital.
For ongoing out-of-hospital support such as seeing a psychologist, you’ll need to add Extras cover. Most mid to top-tier Extras policies include a rebate on psychology or counselling, although benefit limits vary. Some funds also offer coverage for other services related to mental health like hypnotherapy, stress management and wellness programs.
Over two in five (43%) people aged 16-85 years have experienced a mental disorder at some point in their lives, according to the Australian Institute of Health and Welfare (AIHW). Despite the availability of mental health services, access remains a challenge. A report by the Black Dog Institute highlighted that 494,000 Australians living with moderate to severe mental health problems are not receiving the support they need. Alarmingly, 18-24 year olds were twice as likely to have struggled with the cost of accessing help compared to those aged 65-74 years.
Which health insurance policies cover mental health in Australia?
Hospital cover for mental health
This helps pay for inpatient treatment. For example, if you’re admitted to a private mental health facility or hospital ward for anxiety, depression, eating disorders or substance use.
To be fully covered, you’ll typically need a Gold Hospital policy, as it's the only tier that includes unrestricted psychiatric services. Lower-tier policies (Basic, Bronze, Silver) may cover psychiatric care on a restricted basis, which usually means care in a public hospital and may result in significant out-of-pocket costs.
Extras cover for mental health
Provides rebates for out-of-hospital services like psychology, counselling and mental wellness programs. These services are commonly used to manage day-to-day mental health concerns, including stress, anxiety, depression or relationship challenges.
Not all policies include these services, so you’ll typically need a mid to high-level Extras policy. Annual limits and claimable amounts vary between funds, with most offering a percentage back per session when you see a registered provider.
In Australia, private health insurance has a two-month waiting period for psychiatric care under Hospital cover. If you’ve already served this waiting period on a lower level of cover, there’s a one-time exemption that allows you to upgrade and access higher mental health benefits immediately, without re-serving the wait. This applies to in-hospital mental health treatment, including psychiatric, drug and alcohol services. Extras cover for services like psychology also has a two-month waiting period, but this is separate and not included in the exemption.
How private health insurance supports Medicare
Chris Whitelaw, General Manager - Health Insurance at Money.com.au
“Medicare offers a good starting point for mental health support, covering up to 10 subsidised sessions with a psychologist each year. But for people who need more ongoing or specialised care, private health insurance can help fill the gap. It gives you extra flexibility and access to services that Medicare alone may not fully cover.”
Chris Whitelaw, General Manager - Health Insurance at Money.com.au
How much does mental health insurance cost?
Hospital cover that includes mental health can cost between $265 and $420 per month, or $3,180 - $5,040 per year for singles cover, according to analysis by Money.com.au. For Extras cover that includes psychology or counselling, expect to pay around $45 to $140 per month, or $540 to $1,680 annually.
The actual cost will depend on whether you choose Hospital-only cover, Extras-only, or a combined policy. Several other factors also influence your premium:
- The health fund and policy you choose
- Your age and where you live
- The level of cover (e.g. mid vs top-tier Extras)
- Your income (i.e. which affects the private health rebate)
- Whether you’re affected by the lifetime health cover (LHC) loading
- Whether the policy covers just you or also includes family members (e.g. a partner or children)
The table below shows the cost of mental health cover from a range of providers in Australia, based on singles cover for a female aged 35 living in NSW.
Health insurance for mental health cost comparison
Provider | HIF |
|---|---|
Gold Hospital policy monthly cost | $236.26 |
Extras policy monthly cost | $69.20 – $98.39 |
Provider | Medibank |
Gold Hospital policy monthly cost | $267.60 |
Extras policy monthly cost | $27.94 – $58.11 |
Provider | Australian Unity |
Gold Hospital policy monthly cost | $275.44 |
Extras policy monthly cost | $59.24 – $92.10 |
Provider | Bupa |
Gold Hospital policy monthly cost | $280.17 |
Extras policy monthly cost | $45.77 – $137.11 |
Provider | GMHBA |
Gold Hospital policy monthly cost | $283.40 |
Extras policy monthly cost | $45.85 – $108.60 |
Provider | Westfund |
Gold Hospital policy monthly cost | $284.22 |
Extras policy monthly cost | $39.83 – $97.24 |
Provider | Frank Health Insurance |
Gold Hospital policy monthly cost | $286.25 |
Extras policy monthly cost | $43.30 – $110.50 |
Provider | Health Partners |
Gold Hospital policy monthly cost | $288.68 |
Extras policy monthly cost | $47.77 – $93.65 |
Provider | ahm |
Gold Hospital policy monthly cost | $317.80 |
Extras policy monthly cost | $32.90 – $96.30 |
Provider | HBF |
Gold Hospital policy monthly cost | $374.76 |
Extras policy monthly cost | $48.31 – $88.81 |
| Provider | Gold Hospital policy monthly cost | Extras policy monthly cost |
|---|---|---|
HIF | $236.26 | $69.20 – $98.39 |
Medibank | $267.60 | $27.94 – $58.11 |
Australian Unity | $275.44 | $59.24 – $92.10 |
Bupa | $280.17 | $45.77 – $137.11 |
GMHBA | $283.40 | $45.85 – $108.60 |
Westfund | $284.22 | $39.83 – $97.24 |
Frank Health Insurance | $286.25 | $43.30 – $110.50 |
Health Partners | $288.68 | $47.77 – $93.65 |
ahm | $317.80 | $32.90 – $96.30 |
HBF | $374.76 | $48.31 – $88.81 |
A recent Money.com.au survey found that many Australians are using or want to use mental health services – but not everyone has cover. 15.1% had no private health insurance but still used mental health services, 12.4% had private cover and used these services, and 14.6% said they wanted help but couldn’t access it due to cost or availability.
How to choose the best health insurance for mental health
Check for unrestricted Hospital psychiatric cover
If you need inpatient treatment at a private mental health facility or hospital, look for a Gold Hospital policy. It’s the only tier that must include unrestricted psychiatric care. Lower-tier policies may offer limited or “restricted” cover, which can lead to higher out-of-pocket costs or limited provider choice.
Understand waiting periods and the exemption rule
Hospital policies have a two-month waiting period for psychiatric services. However, if you already have cover and want to upgrade for better mental health benefits, you may be eligible for a once-in-a-lifetime exemption, allowing you to access higher benefits immediately without re-serving the waiting time.
Look at Extras cover for psychology and counselling
Hospital cover won’t help with outpatient care like seeing a psychologist. That’s where Extras cover comes in. Look for policies that include mental health support such as psychology, counselling or telehealth sessions. Extras have annual benefit limits and their own two-month waiting periods, but some funds waive waiting periods as part of a promotion or health insurance sign-up offer.
Consider your long-term needs and budget
Mental health support can be ongoing. Choose a policy that balances comprehensive cover with affordability. Look at annual limits for therapy sessions, out-of-pocket costs, and whether your policy includes services you’re likely to need long-term. Also check if you’re eligible for government rebates to lower your premium.
For Extras cover, benefits for psychology are typically paid per consultation – for example, around $60 to $100 per session. Some policies set a fixed amount per visit, while others offer a percentage of the cost (e.g. 60–85%). Most also include an annual limit per person, such as $200 to $400, which caps how much you can claim each year. These limits reset annually and can vary depending on your level of cover (e.g. mid vs top-tier Extras). Once you hit the limit, you’ll need to pay the full cost out of pocket until the benefit resets.
What mental health treatments are covered under Hospital and Extras cover?
Hospital psychiatric services
In-hospital treatment for psychiatric, mental health, addiction or behavioural conditions – such as depression, anxiety or eating disorders – is typically only fully covered under a Gold-tier Hospital policy. Lower-tier policies may include this service at a restricted level, meaning limited benefits, higher out-of-pocket costs, and no choice of specialist.
Digital mental health programs
Access to online cognitive behavioural therapy (CBT) programs, designed to support treatment for anxiety and depression, may be included by some health funds. These programs are typically available through select providers on mid or top-tier Extras policies.
Mental health (including psychology)
Mental health services may include treatment from:
- Psychologists: Diagnose and manage certain conditions without medication.
- Counsellors: Support clients through challenging situations and help them develop coping strategies.
Some policies also cover services provided by Accredited Mental Health Social Workers and Indigenous counselling providers.
What’s not covered under health insurance for mental health?
Therapy sessions not with approved providers
Sessions must be with a registered psychologist, counsellor or therapist recognised by your fund.
Unregistered or alternative mental health therapies
Such as life coaching, hypnotherapy (unless covered under specific Extras policies), or other non-clinical services.
Mental health medications
Prescription medication is generally not covered unless it’s part of inpatient hospital treatment. Most are funded through the Pharmaceutical Benefits Scheme (PBS).
Online programs not recognised by your fund
Only approved digital therapy tools (e.g. CBT apps) from participating providers may be claimable.
How to reduce out-of-pocket costs
1
Choose providers within your health fund’s network
Many health funds have agreements with specific psychologists, psychiatrists, or counselling providers who offer lower gap fees or are fully covered under your Extras policy. Using in-network providers can significantly reduce or eliminate out-of-pocket costs. Before booking an appointment, check with your insurer to confirm the provider is recognised and partnered with your fund.
2
Consider a higher Extras policy with better mental health benefits
Not all Extras policies include mental health support, and those that do may have low annual limits. Choosing a mid or top-tier Extras policy with higher session rebates and annual caps can reduce your ongoing costs if you need regular treatment. Look for policies that cover psychology, counselling and online therapy programs, and compare per-session benefits (e.g. $80–$100 per session or $400 per policy a year).
3
Use your annual Medicare-subsidised sessions first
Under a mental health treatment plan, you can access up to 10 Medicare-rebated sessions with a psychologist or clinical social worker each year. Use these before tapping into your private Extras limits to delay or reduce out-of-pocket expenses.
Medicare vs private health insurance for mental health
Public hospital stays | |
Medicare | Yes – covered in a public hospital as a public patient |
Private health insurance | No |
Private hospital stays | |
Medicare | No |
Private health insurance | Yes – covered with a Gold Hospital policy |
GP visits | |
Medicare | Yes – partially or fully covered under the Medicare Benefits Schedule (MBS) |
Private health insurance | No |
In-hospital specialists | |
Medicare | Yes – covered in public hospitals, but no choice of doctor |
Private health insurance | Yes – covered with Hospital cover, often with choice of doctor and potentially shorter wait times |
Out-of-hospital specialists | |
Medicare | Up to 10 subsidised sessions covered under a mental health treatment plan |
Private health insurance | Yes – covered with Extras cover (limits, co-payments and provider rules apply) |
Psychology or counselling sessions | |
Medicare | Yes – limited sessions via a mental health treatment plan |
Private health insurance | Yes – often included in Extras, but benefit limits (e.g. $80 per session, $700 per year) may apply |
Choice of provider and faster access | |
Medicare | No – typically no provider choice and generally longer waiting times |
Private health insurance | Yes – more flexibility and access to private mental health providers |
| Medicare | Private health insurance | |
|---|---|---|
Public hospital stays | Yes – covered in a public hospital as a public patient | No |
Private hospital stays | No | Yes – covered with a Gold Hospital policy |
GP visits | Yes – partially or fully covered under the Medicare Benefits Schedule (MBS) | No |
In-hospital specialists | Yes – covered in public hospitals, but no choice of doctor | Yes – covered with Hospital cover, often with choice of doctor and potentially shorter wait times |
Out-of-hospital specialists | Up to 10 subsidised sessions covered under a mental health treatment plan | Yes – covered with Extras cover (limits, co-payments and provider rules apply) |
Psychology or counselling sessions | Yes – limited sessions via a mental health treatment plan | Yes – often included in Extras, but benefit limits (e.g. $80 per session, $700 per year) may apply |
Choice of provider and faster access | No – typically no provider choice and generally longer waiting times | Yes – more flexibility and access to private mental health providers |
