How To Deal With Insomnia While Taking Prednisone. Insomnia is a sleep disorder in the form of difficulty to sleep. The symptoms are usually followed by functional impairment while awake.Insomnia is often caused by a disease or due to psychological problems. In this case, medical or psychological assistance will be required. One of the most effective psychological therapies dealing with insomnia is cognitive therapy. In such therapy, a patient is taught to improve sleep habits and eliminate counter-productive assumptions about sleep.