How Do You Pay for Drug Rehab? Insurance, Financing, Self-pay, and More

For many people, embarking on rehabilitation is a necessary but daunting experience. Not only do they not know what to expect, but they can be concerned about the costs involved and that they will spiral out of control. Worries about how to pay for addiction treatment can be one of the primary reasons someone does not seek the help they need. The National Institutes of Health (NIH) reports that only 25% of those with a drug use disorder receive some form of treatment.

Many people do not believe rehabilitation treatment is an option for them as they have a low income, limited financial support, or no health insurance. Ultimately, addiction has already cost them financially and will continue to do so. A long-term drug or alcohol addiction will likely cost far more financially than rehab treatment. Paying for recovery treatment is a necessary cost that you or a loved one may have to bear to overcome addiction. In 2020, 4 million people found the resources and received substance abuse treatment in the US. 2.7 million of them received treatment at a specialist facility.

The good news is that affordable treatment exists, and many payment options and funding sources are available. We are here to help guide you on your path to recovery with valuable information about the funding options available for drug and alcohol rehabilitation treatment.

How Much Does Drug and Alcohol Rehab Cost?

Drug and alcohol treatment programs range in cost, often due to the required level of care and length of treatment. While treatment plans are usually determined in advance according to a person’s individual needs, they must adapt to the patient’s progress. Rehabilitation can be a reasonably short-term process, or it can take many sessions, a wide range of therapies, and years to complete.

The National Center for Drug Abuse Statistics estimates that the average cost of drug abuse treatment is $13,475 per person; however, depending on your circumstances, free or lost-cost treatment programs may also be available. Treatment costs range from resource-heavy detoxification and inpatient programs that last weeks or months to more flexible outpatient programs that require just a few hours per week. Rough costs for treatment are as follows:

Detoxification

In a medically controlled environment, detox is often the first step towards recovery for those with a severe addiction. Medical detoxification programs range in price and start from $1,750.

Inpatient Treatment

Inpatient rehab programs usually require someone to live in a residential rehabilitation center for up to 3 months costing between $2,000 and $10,000 per month. If it is a luxury rehab with premium facilities, it can cost $100,000 or more.

Outpatient Treatment

Outpatient programs are generally cheaper as they do not require accommodation. One singular occurrence of a full treatment program starts from $1400, depending on factors such as the drug addiction being treated and its severity. Partial hospitalization or intensive outpatient programs are more expensive due to enhanced treatment and supervision requirements.

What Other Factors Influence the Cost of Rehab?

The type of facility and the therapies offered are significant factors when determining the cost of rehab. More comprehensive treatment programs that incorporate a wide variety of therapies are likely to cost more. The type of addiction also affects the price as some require more treatment, time, and medical assistance to overcome than others. There are private and state-run treatment centers and both types vary significantly in price:

State Run Rehab Facilities

These treatment centers are among the cheapest in the US. Funded by the federal or state government, they offer affordable or even free treatment to residents.

Private Treatment Centers

The cost of private treatment varies hugely depending on many factors, including the available facilities. Some luxury rehabs are like spa hotels with a high standard of accommodation and meals; they may even include massages, acupuncture, and other holistic treatments. The location also has a bearing. Rehabs in upscale areas, such as Malibu in Southern California, are some of the most expensive in the US.

How Do I Pay For Addiction Treatment?

Private Health Insurance

The Affordable Care Act (ACA) was enacted in 2010 and aimed to make lower healthcare costs and high-quality treatment available to many more Americans. As a result of this law, most health insurance policies must cover drug and alcohol addiction treatment. Additionally, the Mental Health Parity and Addiction Equity Act (MHPAEA) requires that health insurance plans cover the treatment of mental health or substance use disorders to the same degree as other medical issues. There are some exceptions to this, but generally, your insurance company will fully or partially cover your treatment.

The first thing you need to do is to call your private insurance provider and find out more about your coverage. You will need to identify the addiction treatment centers that accept your insurance and determine whether they provide the specific treatment you need. If you cannot find a suitable in-network facility, you may have to pay for treatment yourself.

Like many types of insurance, the more you pay as a monthly premium, the less you pay when you make a claim. In some cases, your insurance may cover all of your treatment. In other cases, you may need to pay a set deductible amount, copay, and coinsurance towards your treatment costs.

Medicare and Medicaid

Medicare and Medicaid are both federal and state-funded health insurance with various eligibility criteria and levels of cover:

• Medicare: Health insurance for people over 65. There is no monthly premium for the entry-level cover of hospital insurance. However, you must pay the deductible and copay for overnight stays and other treatments. Medical insurance and further upgraded insurance coverage are also available for a monthly premium.
• Medicaid: Health insurance for low-income adults, children, pregnant women, older people, and those with disabilities. It currently covers 81.1 million people. Medicaid offers addiction treatment; however, the level of coverage and the amount required in copayment differs from state to state.

Both Medicare and Medicaid may pay part or all of your substance abuse treatment costs, and both can cover them simultaneously. The eligibility criteria change regularly, so it is worth checking annually to see if you are covered. If your need for treatment is not immediate, there may be time to inquire about this before you embark on treatment. In the case of Medicaid, Federal Regulations state that a decision about non-disability-related eligibility must be made within 45 days of application.

Other Forms of Health Insurance

Other health insurance programs apply to some people with varying coverage and copay costs. Examples include:

• Veterans health care: Veterans Affairs (VA) Health Care is available and includes treatment for substance use disorders. Treatments related to military service are free, but others may require a copay. The amount you pay depends on your circumstances and military service length.
• Workplace health insurance: Some employers offer health insurance to their employees with coverage for addiction treatment. COBRA is a federal law allowing workers to continue their workplace health insurance coverage even after voluntary or involuntary termination, retirement before Medicare, or as a former spouse after divorce.
• Health savings account: This is a savings plan rather than health insurance as it allows people to save pre-tax money for healthcare costs. If you have money saved within your HSA, you can use it to pay your deductible, copay, or coinsurance.

You can consult the government-funded Health Insurance Marketplace if you are looking for the best value health insurance for yourself or your family. You can find information about state-funded health insurance eligibility and tax credits toward private health insurance.

How Do I Pay For Rehab if I Do Not Have Health Insurance?

If you, or a loved one, needs substance abuse treatment but does not have health insurance, do not panic or give up. You still have the following options to explore:

State-Funded Rehab

These addiction centers provide either free or subsidized treatment for those with low income or little or no insurance coverage. Funding is obtained from the individual state, reimbursement from Medicaid, and federal grants from SAMHSA (Substance Abuse and Mental Health Services Administration). The justification for the state expenditure is the saving on other state services. For every dollar spent on addiction treatment programs, $12 is saved in the areas of healthcare, drug-related crime, and theft. The downside is that the waiting lists are often long. Also, the treatment options are not as comprehensive as in private facilities.

You can consult the SAMSHA Behavioral Health Treatment Services Locator to find state-funded rehab centers near you.

SAMHSA Grants

SAMHSA offers grants to people who need addiction treatment and do not have the resources to pay for treatment themselves. The eligibility criteria and application process for SAMHSA grants can be viewed on the website.

Scholarships

Many rehab centers offer scholarships for those most in need that meet specific criteria. Once you find treatment facilities in your area that provide what you need, you can contact them to see if they offer scholarships.

Subsidized Treatment

Tax credits and subsidies designed to assist with paying for addiction treatment may be available in your state. General enrollment is from 1st November each year, but it is possible to enroll outside of the set period in exceptional circumstances. You can find out more and check your eligibility on the Healthcare.gov website.

Employee Assistance Program

Some companies offer Employee Assistance Programs (EAP) and workplace health plans. These programs are voluntary and designed to assist employees in managing any problems they have both inside and outside of work. Issues addressed include family problems, mental health concerns, and drug or alcohol addiction. Trained counselors usually run free programs for employees and their family members.

Non-Profit Organizations

Many non-profit organizations and charities work in the field of addiction recovery. This work includes campaigning for changes to the law, raising awareness of the addiction issue, offering advice to those needing help, and, in some cases, offering free or heavily subsidized treatment services. Examples of the types of organizations you can approach for help are:

• International: Alcoholics Anonymous and Narcotics Anonymous are examples of international organizations that utilize self-organized support groups and mentorship programs to support those recovering from addiction.
• National: The Partnership to End Addiction aims to empower families and transform how addiction is handled in the US. They offer a free helpline service with advice and support on available treatment options.
• Local: Angels at Risk is a California-based non-profit organization supporting awareness and treatment of drug and alcohol abuse in kids, teens, and families. Many similar organizations exist across the US. Search engines can help you to find them, and they will be able to offer advice, support, and, in some cases, treatment programs that are close to where you live.
• Faith-based: Many faith-based groups provide programs dedicated to recovery from drug and alcohol abuse. For example, The Salvation Army Adult Rehabilitation Centers are available nationwide. You can ask your faith leader for guidance if you are looking for treatment.

Sliding-Scale Payments

Addiction treatment providers often offer sliding-scale payment plans. Income is assessed, and a charge is made based on what someone can afford. These plans encourage lower-income people to seek the treatment they need.

Borrowing or Raising Money 

Like many significant purchases in life, including houses and cars, funds for a considerable expense such as rehab treatment can be paid upfront through various means and repaid over a period of time. Means of borrowing or raising money for treatment include:

• Financing for rehab: Using a dedicated finance scheme, treatment can be paid upfront and then repaid over time at a lower rate than many standard loans. Some banks or treatment facilities will offer financing options, and repayment is often not required until the treatment has finished.
• Credit cards and bank loans: If treatment is urgent, funds are not available elsewhere, and your credit rating is good, it may be necessary to obtain a credit card or bank loan. If possible, you should shop around for the lowest interest rate possible.
• Borrowing money from others: Often, people are reluctant to ask. Still, close friends and family members may be willing to pay or loan money for treatment to support the well-being and recovery of the person in need.
• Raise money: Some people have been able to fund their addiction treatment with money raised through GoFundMe or similar crowdsourcing platforms. Alternatively, it may be possible for you to sell items that you own or offer services in exchange for cash. Often asking many people for just a small amount is more successful than asking one or two people for a large amount.

With all of these funding options available, you will be able to find effective addiction treatment that fits your financial situation. Paying for rehab does not necessarily need to be a barrier to recovery. Drug and alcohol rehabilitation treatment can be costly, but a long-term addiction can cost you more. Make the decision today to investigate your options and take that first step on your path toward freedom from addiction.