-person-thumbnail.jpg?v=1758880627)
Commencing substance use disorder treatment can feel very overwhelming, particularly due to the high costs. However, financing rehab doesn’t have to be a barrier to treatment, as many options are available, including government funding, health insurance, and sliding-scale payments. This guide can help you learn what you need to navigate the process and start your recovery journey.
- Rehab payment options can include private health insurance, Medicaid or Medicare, government funding, scholarship funds, and payment plans.
- Treatment costs will vary depending on many factors, including the substance needing treatment, dependence severity, program type, and other personal preferences.
- People with low incomes or concerns about paying for rehab can seek advice and financial support through government or state organizations.
Different ways to pay for addiction rehab
Rehab costs vary by individual, treatment type, and insurance provider. Paying for addiction treatment and rehab can involve a combination of personal funds, insurance contributions, and other organizational or governmental financial aid.
Self-funded
This is the most expensive option, as it uses personal funds, savings, or loans. This option often involves high upfront costs or payments spread over several months or years, and additional or unexpected costs can arise during treatment.
However, self-funded rehab lets individuals choose any facility and select their preferred options, such as alternative or holistic therapies, locations, and luxury amenities.
Health insurance
Health insurance will often cover at least part of a rehab treatment program, as long as the facility is in-network and certain criteria are met. This can vary by insurance provider, and you will usually have some out-of-pocket costs.
It is always recommended to discuss rehab options carefully with the insurance provider before committing to ensure that coverage requirements and out-of-pocket costs are clear.
Payment schedule
Some facilities offer a payment plan, meaning that the total cost can be paid in installments over several months. This can help alleviate financial pressure to pay in full before treatment.
However, it requires a binding contract that remains in place throughout treatment and the following months. Should the individual be unable to pay an installment, they may incur penalties or additional fees.
Medicare and Medicaid
Medicare is a government insurance program for older adults and people with disabilities.
Medicaid is a state- and federally funded program for low-income individuals.
These programs can provide coverage for substance use disorder treatments, including inpatient and outpatient care and long-term recovery support. Specific coverage can vary by state. Typically, out-of-pocket costs and copayments are low for eligible individuals.
Scholarship
Some organizations or facilities offer scholarships or grants. These are often limited, with only a small number of applicants accepted, and can involve a highly competitive number of applicants.
The scholarship amount might cover 100% of all treatment needs at a specific facility. This will likely involve most of the necessary treatment but not ongoing rehabilitation.
Voucher program
Similarly, state or federal organizations offer grants or vouchers, typically targeting high-risk or underserved communities or populations. This might be a set amount given to an individual to utilize in a specific facility for a specific treatment program.
Types of addiction treatment and how much they cost
There are various types of addiction treatment available, and the costs vary significantly depending on the facility, duration of treatment, and other individual circumstances. [1]
For the most part, addiction treatments can be partially or completely covered by insurance and Medicaid.
Medication treatment
Medication-assisted treatment (MAT) involves medications used to support people during withdrawal and long-term recovery. Common MATs include medication for opioid use disorder (MOUD) and medication for alcohol use disorder (MAUD), such as buprenorphine, methadone, naltrexone, and disulfiram.
Medication costs can vary significantly and may exceed $ 5,000 per year.
Detox
Detoxification programs are intensive, short-term programs that support individuals through withdrawal. This can be provided through an outpatient program or an inpatient program, which is more intensive and includes medications and around-the-clock monitoring.
The cost of detox programs varies depending on the intensity and duration of treatment. This can range from around $500 to $ 1,000 per day, and a program typically lasts about 7 days.
Residential programs
Residential programs vary in intensity, luxury level, and duration, which affects total costs. These programs provide live-in care and offer a range of treatment approaches and specialized options. The total cost of residential treatment can range from $5000 to $80,000.
Inpatient hospitalization
Inpatient programs are generally intensive, comprehensive treatment programs with professional monitoring, medications, and therapies. Costs can vary depending on the facility and level of care required, typically ranging from $5000 to $20,000 for a 30-day program.
Outpatient treatment
Outpatient treatments range in intensity and duration, from one or two appointments per week to partial hospitalization programs. As such, costs tend to be higher with higher-intensity programs. A 30-day outpatient program can cost $5,700 on average, with more intensive programs increasing to almost $20,000.
The cost of rehab and barriers to treatment
The high costs of rehab and addiction treatment services can be a common barrier for many who require treatment. As demonstrated, the costs of rehab programs and medications can be very high, and many people are unable to afford them.
Additionally, attending rehab and treatment appointments can result in lost income and transportation costs, causing further financial burdens. For many people, this is the reason they cannot start or continue with necessary treatment.[2]
The Affordable Care Act & addiction treatment?
Yes, the Affordable Care Act does apply to addiction treatment. All ACA-compliant private health insurance programs, Medicare, and Medicaid must include mental health and substance use disorder services.
This can vary by plan and may include specifications around service duration or facility. However, non-ACA-compliant plans may exclude mental health services. Be sure to check the plan’s contract to be sure.
Medicare for rehab
Medicare does include rehab coverage, although there are specific criteria and limits. For example, the individual must have been referred to rehab services by a medical professional and attend an in-network facility. For the first 60 days of rehab, the individual pays a one-off flat amount (around $1700). Days 61 onward incur daily charges, up to a limited number of days, after which no further coverage is provided. [3]
Outpatient substance use disorder treatments are usually covered.
Finding free and funded treatment
To find free and funded treatment, individuals can contact their state agency to find out about state-specific requirements and eligibility by searching the Directory of Single State Agencies (SSAs). Our guide on accessible and free addiction treatment provides more details.
Knowing what your health insurance provider covers
Health insurance providers offer a wide range of coverage, and you should clarify your coverage before committing to or starting a treatment program. Contact your provider directly and request specific details of their coverage for your substance use treatment needs. Aspects to confirm include:
- Out-of-pocket costs for specific treatment program types.
- Requirements for pre-authorization.
- Deductibles and maximum limits.
- If they cover out-of-network providers and how to ensure a facility is covered.
Paying for an extended treatment plan
Extended treatment plans can be costly, even with insurance coverage. To help, it can be beneficial to plan for a step-down program. For example, commence with a detoxification or inpatient program, step down to a partial hospitalization program (PHP), and then to an intensive outpatient program (IOP).
This approach can ensure treatment needs are met while gradually reducing costs or maintaining insurance coverage.
Again, this varies by state and individual circumstances. People with co-occurring conditions or intensive treatment needs might qualify for extended insurance coverage or government funding.
Final thought
Rehab costs can seem daunting and might deter individuals from seeking professional support. However, many options exist to pay for rehab services, and government support is widely available through a range of programs.
People can seek advice about treatment options and the types of financial support available.
