HSA for Mental Health: Therapy, Counselling, and Psychologist Expenses in Canada
Yes, mental health expenses are fully eligible through a Health Spending Account in Canada. Therapy, counselling, psychologist visits, and psychiatric care all qualify as CRA-eligible medical expenses. If your business has an HSA, you can cover these costs with pre-tax corporate dollars -- making mental health care significantly more affordable.
This is a big deal because traditional insurance often caps mental health sessions at a small number per year -- sometimes as few as 5 or 10. With an HSA, there are no session limits. You can claim as much as your annual balance allows.
Mental Health Expenses Covered by Your HSA
Here is the full list of eligible mental health expenses you can claim:
- Psychologist sessions -- registered psychologists are fully eligible, no referral or prescription needed
- Psychotherapy -- sessions with a registered psychotherapist
- Counselling -- licensed counsellors and therapists, including marriage and family counsellors
- Social worker services -- registered social workers providing mental health support
- Psychiatrist visits -- covered as a medical doctor, though most provinces also cover psychiatrists through provincial health plans
- Occupational therapy -- when related to mental health rehabilitation
The CRA recognizes all of these as eligible medical expenses as long as the provider is a licensed or registered practitioner in your province.
Do You Need a Prescription or Referral?
For most mental health services, no. You do not need a doctor's referral or prescription to claim psychologist, psychotherapist, or counsellor sessions through your HSA. You just need to see a practitioner who is registered or licensed in your province.
The one exception is psychiatrists -- they are medical doctors, so you typically need a referral from your family doctor to see one. But that is a healthcare system requirement, not an HSA rule.
Why an HSA Is Better Than Insurance for Mental Health
Traditional group insurance plans almost always put a dollar cap on mental health coverage -- often $500 to $1,000 per year. That covers maybe 5 to 8 sessions with a psychologist, which is rarely enough.
With an HSA, your full annual balance can go toward mental health care. If your business sets a $2,400 annual allowance per person, you could claim 20 or more therapy sessions per year -- no cap on the number of visits, no pre-approval, and no waiting for insurer sign-off.
That flexibility makes a real difference for people who need ongoing support.
How to Claim Mental Health Expenses
The process is the same as any other HSA claim:
- Attend your appointment and pay your provider directly
- Get a receipt -- it should include the provider's name, credentials, date of service, and amount paid
- Submit your receipt through the app
- Get reimbursed -- with Frontier Health, you receive your money by e-transfer within 24-48 hours
To learn more about how claims work, see how a Health Spending Account works in Canada.
Get Started with Frontier Health
If your business does not have an HSA yet, Frontier Health makes it easy to get set up. There are no monthly premiums, no setup fees, and no session limits on mental health care. Your business writes off every dollar as a tax-deductible expense, and your team gets the mental health support they need -- completely tax-free.
Related Reading
- HSA claim requirements -- What you need to submit a claim
- physiotherapy and massage therapy coverage -- Paramedical coverage details