How to Pay for Rehab
The most common ways to pay for withdrawal treatment include private insurance, attending state-financed rehab, or rehab financing. Learn more here.
Takeaways from this article:
How to use private insurance for rehab.
How to check if your insurance covers rehab.
Rehab options for people without insurance.
While most people pay for treatment by using some form of insurance, there are other methods available such as rehab financing, rehab payment plans, and even crowd-funding through community platforms like gofundme.
The costs for withdrawal treatment vary depending on the type of treatment program you are seeking and the length of stay required. There are State-financed programs, programs that offer sliding scales for people who pay out-of-pocket, and private treatment programs that offer substance abuse treatment scholarships.
Most programs take at least some type of insurance, and many offer different types of payment options. This article will outline the different ways you can pay for withdrawal treatment when you are in need.
Does Insurance Cover Rehab?
For many, private insurance is the most readily available way to pay for rehab or detox. Many withdrawal treatment programs, like American Addiction Centers, accept insurance and most insurance plans cover a large percentage of the cost of detox treatment or rehab.
For those who have private insurance available to them, this is often the most desired way to attend treatment because facilities that accept private insurance policies often boast greater amenities, higher staff-to-patient ratios, and aren’t required to follow governmental restrictions. For instance, private treatment centers can often admit you immediately and there are no limits to how many times you may receive treatment. Whereas state-financed programs may place you on a waitlist or deny you re-admittance if you relapse.
When you begin exploring ways to pay for detox treatment, your first step will likely be to find out how much of your private or state health insurance will cover. Addiction treatment is generally a part of the existing healthcare insurance plan for many policies, and it can significantly lower the total cost to you.
If you have questions, you may call your insurance company to speak with someone who can provide more information about which detox center and/or programs are covered by your plan. If you have a specific detox center in mind, you can also call the detox center and ask them to help you determine whether your insurance is accepted and what your estimated out-of-pocket cost might be.
Do keep in mind that while insurance coverage can greatly lower the cost of detox treatment and rehab, it can also limit the available detox or treatment options. Finding a facility that’s covered by your insurance and that offers the kind of detox you need can take some time and effort, especially when the available facilities may not have an immediate opening for new patients. Fortunately, most insurance plans cover treatment at a large enough number of facilities to ensure that a little searching will allow you to find an appropriate fit.
If you’re wondering whether or not your insurance provider covers withdrawal treatment, take a look at our withdrawal treatment insurance guides.
Feel like your only option to go to rehab without insurance? You can explore ways to gain coverage by contacting your local area resources or searching online through the health insurance marketplace. The landscape of insurance is always shifting, but helpful and affordable insurance options are still available to help you find the care you need to leave addiction behind.
The Affordable Healthcare Act
The Affordable Care Act (ACA), which was passed by Congress in 2010, provided expanded Medicaid coverage in many states and opened up Medicaid funding to more people of different income levels. In addition, ACA provided subsidies that paid all or part of healthcare insurance premiums for people who meet certain income requirements. This enabled more people to obtain private insurance.4
The ACA mandates that insurance plans provide coverage for substance abuse treatment and that prior substance abuse diagnoses cannot prevent you from getting healthcare coverage. Substance abuse cannot be labeled a pre-existing condition and companies cannot refuse to pay for substance abuse treatment. Plans must cover your substance abuse treatment from the day your health insurance coverage begins with no waiting periods.5 This is important information to know if you are currently uninsured.
If you are not eligible for Medicare or Medicaid, you should look into purchasing a healthcare plan through the Healthcare Marketplace. If you qualify for coverage, you can use your plan immediately to pay for detox and other forms of addiction treatment.
Medicaid and Medicare
Most rehab programs operated through local, state, or federal government agencies accept Medicaid and Medicare. If you do not have private insurance, you may be covered or eligible for coverage under Medicare or Medicaid. Medicare is a federally funded public insurance program primarily for people over the age of 65 and those who have certain disabilities or meet other requirements.2 With Medicare, you often have a 20% co-pay that covers a small part of the overall cost of treatment.
Those with Medicaid usually do not have any out-of-pocket costs. This government-funded health insurance program covers adults, children, and pregnant women who meet certain criteria based on income limits.
Medicare is generally accepted at more facilities than Medicaid. However, some treatment facilities in the private sector do not accept Medicaid and will take only private insurance.
Many states, and certain communities, have state-funded rehab programs that offer lower-cost or even free substance abuse treatment. Some of these programs may ask for a relatively low co-pay for services. There may be a long waiting list and you may only be able to get treatment at some of these if you meet certain criteria, including income limits. Hence, payment options for these facilities may be limited. Some specialized programs may serve only people recently released from jail, for example, on only pregnant women. A private treatment center may be preferable, despite being more costly, due to restrictions on who can receive services and long waiting lists.
Private Rehab Financing
Another payment option for withdrawal treatment without insurance is private pay. With private pay, the patient pays the full cost of treatment. While the program length can vary according to the individual patient’s detox needs, the treatment facilities are experienced enough in determining possible treatment lengths to make an accurate assessment of program costs before beginning treatment, so you shouldn’t be surprised by any costs at the end of your care. Private pay covers all program costs, including medications.
There are many ways to alleviate the burden of a large treatment bill. These include loans, healthcare credit cards, or special financing plans from the treatment center or a financial institution. Under any of these payment plans, the facility charges the patient the full amount, but the person makes payments over a period of time. This allows for individuals who don’t have the immediate financial resources the opportunity to get the necessary help.
When the patient cannot afford the full amount, the facility may offer detox for a price less than what is normally charged. The detox center may charge for services on a sliding scale, meaning the final cost of treatment will be calculated according to the patient’s income, expenses, and treatment needs. This reduced price is then paid in full as an upfront payment or over an extended period in equal partial payments.
There is also the option of using crowdfunding sites to ask loved ones for help getting addiction treatment. Starting a fundraising page like gofundme for rehab gives you the opportunity to let those who care about you and are personally invested in your recovery the chance to help you get there by contributing financially to your treatment.
Finding a treatment facility in which you can afford the cost of detox and continuing care can be time-consuming. To cut down the search time tremendously and get your treatment started as quickly as possible, call for help today.
Check Your Insurance Coverage at American Addiction Centers
- Substance Abuse and Mental Health Services Administration. (2019). Key substance use and mental health indicators in the United States. Results from the 2018 National Survey on Drug Use and Health.
- Medicare.gov. What’s Medicare?
- Healthcare.gov. Medicaid and CHIP coverage.
- Healthcare.gov. Affordable care act.
- Healthcare.gov. Mental health and substance abuse coverage.