Medicare, Rebates & Referrals… Oh My! A Simple Guide for Parents Seeing a Child Psychologist

If you’ve found yourself thinking, “I just want to support my child… why is the money side so confusing?” - you’re not alone.

Once parents start looking into seeing a child psychologist, a whole new language appears: Medicare rebates, Mental Health Care Plans, referrals, private health insurance… and suddenly it feels like you need a degree just to book an appointment.

Take a breath. This guide is here to explain fees, rebates, and referrals in plain English - no jargon, no pressure, and no judgement.

Do I Need a Referral to See a Child Psychologist?

Let’s start with the good news: you don’t always need a referral.

You can book an appointment with a child psychologist without a referral and pay privately. Many families choose this option, especially if they want to get started quickly or prefer fewer hoops.

However, if you’d like to access Medicare rebates for psychology sessions, you will need a referral from a GP (or sometimes a paediatrician or psychiatrist).

Both options are completely okay - there’s no “better” choice, just what works best for your family.

What Is a Mental Health Care Plan?

A Mental Health Care Plan (MHCP) is something your GP prepares to help children and adolescents access Medicare rebates for psychology sessions.

During a Mental Health Care Plan appointment, your GP will:

• Talk with you (and sometimes your child) about concerns and wellbeing

• Ask about emotions, behaviour, school, and stressors

• Decide whether a Mental Health Care Plan is appropriate

• Provide a referral to a psychologist

These appointments are usually longer than a standard GP visit, so it’s worth booking ahead.

How Many Psychology Sessions Does Medicare Cover?

With a Mental Health Care Plan, Medicare currently offers rebates for:

👉 Up to 10 individual psychology sessions per calendar year

Usually:

• The initial referral covers 6 sessions

• A review appointment with the GP is needed to access the remaining sessions

Your psychologist can guide you through this process - you don’t have to keep track of it all on your own.

How Do Medicare Rebates Work?

Medicare does not cover the full cost of a psychology session.

Instead:

• You pay the full session fee on the day

• Medicare rebates a set amount back to you

The rebate amount is set by Medicare, can change over time and can depend on your psychologists' qualifications. Claims can be processed by your or your psychologist may be able to put the claim in for you. Talk to us about the current Medicare rebate and how claims are processed at Terri Katz Psychology.

Can I Use Private Health Insurance Instead?

Yes - some families choose to use private health insurance rather than Medicare.

A few important things to know:

• You generally can’t claim Medicare and private health for the same session

• Rebates depend on your health fund and level of cover

• You may need to check:

  • Whether psychology is included

  • Annual limits

  • Waiting periods

  • Whether a referral is required

A quick call to your health fund can usually clear this up.

What If We Don’t Use Medicare or Private Health?

That’s completely okay too.

Many families attend therapy as private-pay clients, without rebates or referrals. This option can offer:

• More flexibility

• No limits on session numbers

• No GP reviews or extra paperwork

For some families, keeping things simple feels like the best choice.

So… Which Option Is Best?

There’s no one-size-fits-all answer.

Some families:

• Start privately and organise a referral later

• Use Medicare for part of the year

• Use private health insurance instead

• Choose private sessions for continuity and flexibility

What matters most is finding an option that:

✔️ supports your child

✔️ feels financially manageable

✔️ doesn’t add extra stress to your plate

A Gentle Reminder for Parents 💛

If this all feels overwhelming, you’re not doing anything wrong.

The funding system is confusing - especially when you’re already navigating school, family life, and big emotions at home. It’s okay to ask questions and take things step by step.

Still Not Sure Where You Fit?

If you’re considering therapy for your child and aren’t sure whether you need a referral - or you’d just like to talk through fees, rebates, or options - you’re very welcome to reach out.

Sometimes a short conversation is all it takes to make things feel clearer.

👉 Enquire to book a session or get in touch to talk through fees, rebates, and referrals.