A Guide to Mental Health Insurance Options 


Society has developed increasing awareness of people’s mental health. Today, people are more encouraged to tackle their mental health issues and seek professional health to address them. 

However, only a few individuals know they can avail affordable and comprehensive mental health care through health insurance. To learn more about the concept of mental health insurance and its importance, continue reading this guide we have prepared for you. 

1. What is mental health insurance? 

A mental health insurance policy covers costs incurred when an insured person is in-patient care due to mental health issues. It covers medications, diagnostics, treatment costs, and room charges, among many others.  

Everyone can suffer from any mental illness and mental health insurance can help you cover the expenses of patient care in case you experience any disease concerning mental health. Depending on your age, you can check best health insurance companies for young adults, children, and seniors.  

2. Types Of Mental Health Insurance Plans 

There are different kinds of mental health insurance you can now avail of. Explore your options through our list below.  

3. Employer-Based Insurance 

If you’re working under a company with over 50 employees, your health insurance covers mental health services you can avail of as an insured individual. For small-scale businesses, small-group insurance can be the ideal option.  

However, large group plans can be more favorable for employees since their employees will be required to pay 50% of the contribution. Meanwhile, small-group insurance doesn’t pressure employees to pay half of the premiums. This means they have the choice to only pay a decided portion of the premiums, which can be less than 50%.  

4. Health Insurance Marketplace 

These are private or personal insurance you can purchase in the government’s online marketplace. This type of insurance covers both physical health coverage and mental health care. This insurance includes inpatient mental and behavioral health treatment, therapy and counseling, and substance use disorder treatment.  

5. Medicare and Medicaid  

As a government-funded insurance, Medicare is an inclusive option for low-income individuals or people with disabilities. This covers mental health care with little to no deductibles or copay. Medicaid, federally-funded insurance, is a possible option for older individuals and people with disabilities. If you have signed up for a Medicaid program, you will also be entitled to mental health care. The requirements vary based on the program you chose.  

6. Children’s Health Insurance Program 

For children in need, Children’s Health Insurance Program (CHIP) could be an option. This includes comprehensive healthcare services, including mental health crisis intervention, marriage and family counseling, mental illness/substance use disorder, drug and alcohol outpatient, and behavioral specialist consultation, among many other services to mention.  


When shopping for an insurance policy, consider asking about the healthcare services included in the coverage. This way, you don’t have to worry about the costs if you need to undergo assessments and therapy sessions. You can also talk to mental health professionals and seek suggestions for insurance at reasonable rates. 

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