Does Medicare Cover Therapy? Complete Guide to Cost & Coverage
Does Medicare cover therapy? Learn about inpatient, outpatient, and online therapy coverage. Discover how Medicare Parts apply to mental health care.
Key takeaways
Mental health concerns may be more common than you think in the older population. According to the United States Census Bureau, 3 out of 10 older adults who have Medicare struggle with their mental health.
Federal law requires Medicare to help cover medically necessary mental health services. If you have Medicare, your insurance will help cover the costs of services such as inpatient psychiatric care, outpatient therapy, and outpatient psychiatric services. However, there are certain guidelines and limitations to coverage.
Understanding Medicare’s coverage is crucial for people seeking therapy, psychiatry, or any other mental health services. Read on to learn more about what Medicare covers.
Understanding Medicare and Mental Health Coverage
Medicare is federal health insurance, meaning it’s provided by the government. This insurance helps cover some of your medical expenses, including doctor's appointments and hospital stays. Medicare also provides mental health coverage.
It’s available to U.S. adults ages 65 and older. A few other populations are eligible as well, including:
- People with certain disabilities
- People with permanent kidney failure
- People with amyotrophic lateral sclerosis (ALS)
Different parts of Medicare cover different types of care. These include:
- Medicare Part A: Also called “Hospital Insurance,” Part A covers inpatient stays in the hospital, skilled nursing facility care, and hospice care. Medicare Part A covers some in-home health services, too.
- Medicare Part B: Also referred to as “Medical Insurance,” Part B covers general outpatient care, like doctor appointments, preventative services, medical equipment (like wheelchairs), and some home health services. This is the part that helps pay for outpatient therapy and psychiatry, too.
- Medicare Part C: Commonly called “Medicare Advantage,” there are plans from private insurance companies that serve as an alternative to Medicare Part A, B, and sometimes D.
- Medicare Part D: This helps cover prescription medications and vaccines.
Does Medicare Cover Therapy and Psychiatry? A, B, C, and D Coverage
Yes, Medicare provides coverage for mental health care services, including inpatient care, outpatient therapy, psychiatry, and other related services.
Medicare Part A: Inpatient Mental Health Care
Part A covers inpatient mental health care in a hospital setting, which could include general hospitals and psychiatric hospitals.
However, there are some limitations to consider. When it comes to cost, you must reach your deductible before your insurance starts to help pay for services. In 2025, the Part A deductible is $1,676. After meeting your deductible, pricing is as follows:
- $0/day for days 1-60
- $419/day for days 61-90
- $838/day for days 91-150
- Full cost for days 150 and beyond
Note: This pricing is accurate at the time of publication (June 2025), but it is subject to change. Check with a Medicare representative for the most up-to-date costs.
Additionally, there is a limit on the number of days Medicare covers for inpatient care. Medicare will cover up to 190 days of inpatient care in a psychiatric hospital over your lifetime.
Medicare Part B: Outpatient Therapy and Psychiatry Coverage
Medicare Part B covers outpatient mental health therapy and psychiatry services related to diagnosing and treating mental health conditions. These services include:
- Individual therapy
- Group therapy
- Family counseling
- Mental health services related to substance use disorder treatment
- Depression screening
- Psychiatric evaluation
- Medication management
It also covers more intensive outpatient mental health therapy services, including partial hospitalization programs (PHPs) and intensive outpatient programs (IOPs).
Part B covers outpatient therapy from various mental health professionals, including:
- Mental health counselors
- Clinical psychologists
- Clinical social workers
- Mental health counselors
- Marriage and family therapists
- Clinical nurse specialists
- Nurse practitioners (typically only provide therapy alongside medication management)
It also covers outpatient psychiatry services from:
- Psychiatrists
- Nurse practitioners
- Physician assistants
You must meet your deductible before Medicare pays for a portion of your therapy or psychiatry costs. After meeting your deductible, you will have to pay a coinsurance, which is 20% of the Medicare-approved amount charged by the provider.
There is no specific limit on the number of therapy or psychiatry sessions you attend, as long as your healthcare provider deems your sessions as a medically necessary part of your treatment for a diagnosed mental health condition.
Medicare Part C (Medicare Advantage): Expanded Coverage Options
Since Medicare Part C plans (AKA Medicare Advantage plans) are purchased through private insurance companies, they may offer additional benefits, like expanded access to therapy, on top of Original Medicare Parts A and B. However, these plans might also require referrals or preauthorization for certain services.
There are many different private insurance companies to choose from, and individual plans vary between insurance carriers. Coverage varies depending on what company and plan you have, so make sure to check with a customer service representative to find out what specific mental health services are included in your plan.
Medicare Part D: Prescription Drug Coverage for Mental Health
If your doctor or mental health care provider prescribes psychiatric medications as part of your treatment plan, Medicare Part D will help cover prescription costs.
Each Part D plan has its own formulary, or a list of drugs it covers. All Part D plans are required to cover antidepressants, antipsychotics, and anticonvulsants. These three drug classes are commonly prescribed for mental health conditions. Be sure to review your plan's formulary for coverage details.
Does Medicare Cover Psychiatrist Services?
Yes, Medicare insurance covers psychiatric services. Medicare Part A covers psychiatric services in an inpatient setting. Medicare Part B covers psychiatric services in an outpatient setting, including psychiatric evaluations (a thorough assessment, typically conducted during your first appointment to determine a diagnosis and appropriate treatment plan) and medication management (ongoing appointments to monitor and adjust medication dosages and get refills).
You can see a psychiatrist in either an inpatient or outpatient setting. Inpatient care is when you stay in a hospital (either a psychiatric hospital or a general hospital). This is for people in an acute mental health crisis or with serious mental health conditions that require 24/7 monitoring. Outpatient psychiatric care is provided in a provider’s clinic, office, or through virtual telehealth visits.
Types of Therapy Covered by Medicare
Mental health professionals provide services in different formats. Medicare coverage includes specific forms of therapy, including:
Individual Therapy
Individual psychotherapy, AKA talk therapy, is a very common form of mental health treatment. In talk therapy, a professional, such as a clinical psychologist or mental health counselor, can help identify your concerns, teach you coping skills, and create a plan to improve your mental health symptoms.
Group Therapy
Group psychotherapy involves applying therapeutic modalities in a group setting, typically consisting of five to 15 people, led by one or more licensed mental health professionals. These groups are often geared towards a specific type of mental health concern or form of treatment. Group therapy is a great way to feel a sense of community and connect with others in the same shoes as you.
Family Therapy
Medicare covers family therapy, as long as the main purpose of this therapy is to help with your overall treatment and it’s deemed medically necessary. Licensed marriage and family therapists are typically the professionals who provide this type of therapy.
How Much Does Therapy Cost Under Medicare?
Medicare covers a portion of your costs. However, you will still have to meet your deductible and pay any applicable copayments or coinsurance. Here’s a quick refresher on what these terms mean:
- Deductible: The amount of money you have to spend on healthcare before your plan starts to help you pay for services.
- Copayment: A fixed amount that you pay for a service.
- Coinsurance: A percentage of a cost that you’re expected to pay.
You must meet your Part B deductible before your plan will help cover the cost of your therapy sessions. In 2025, the Medicare Part B deductible is $257. Once you meet your deductible, your coinsurance or cost per therapy session will be 20% of the Medicare-approved amount for the provider. You will have to contact your provider and/or Medicare to get an exact cost breakdown.
Talkiatry: Mental Health Care, Covered by Medicare
Talkiatry is a virtual national psychiatry practice that accepts insurance and is in-network with Medicare. We focus on psychiatric care, but we also have therapists on staff who work with patients who are also seeing one of our psychiatrists. We do not offer standalone therapy, so psychiatric care is the first step to accessing our therapy services.
To get started, complete our free online assessment to get matched with a psychiatrist and start your treatment journey.
Does Medicare Cover Therapy FAQs
Does Medicare cover online therapy?
Yes, Medicare covers telehealth services, including online therapy. However, starting in October 2025, some limitations will apply.
How many therapy sessions does Medicare cover?
There is no limit on outpatient therapy sessions covered by Medicare, as long as they are deemed medically necessary as part of your treatment plan.
What treatments are not covered by Medicare?
Medicare won’t cover any type of mental health treatment deemed not medically necessary.
Can I see any therapist I want with Medicare?
You will have to see a therapist who is in-network with your Medicare plan if you want it to be covered. Otherwise, you will have to pay a higher out-of-pocket cost.
