Paying for Rehab: Does Insurance Cover Drug & Alcohol Rehab?

Yes, private and public health insurance may be able to help you cover some or all of the cost of drug and alcohol rehab. Your coverage depends on your specific health insurance plan. To understand what’s covered and your out-of-pocket costs, contact your insurance provider. Alternatively, you can contact American Addiction Centers (AAC) to verify your insurance benefits.

The Affordable Care Act (ACA) requires all health insurance plans sold on Health Insurance Exchanges or provided by Medicaid to provide some type of coverage for the treatment of substance use disorders and other mental health conditions.¹ In addition to the ACA, the Mental Health Parity and Addiction Equity Act (MHPAEA) prohibits private and public health plans and insurance companies from providing less favorable benefits for substance use disorders and other types of mental health treatment than they provide for medical or surgical benefits. Substance use disorders and other mental health conditions must be covered as essential health benefits.²

What Insurance Providers Offer Rehab Coverage?

The majority of health insurance companies offer at least some coverage for drug and alcohol rehab. Reaching out to your health insurance company directly or verifying your insurance with AAC will help you understand what’s covered and for how long as well as the out-of-pocket costs you will be responsible for paying. 

The amount that you will be expected to pay out of pocket for drug and alcohol treatment depends on your individual health care plan. If you’re currently shopping for health insurance plans, it’s key to carefully read your benefits before making a decision.

Types of Insurance Plans Used for Rehab

There are four main types of health insurance plans, including:³

• Exclusive provider organizations (EPOs). EPO plans offer managed care services that are only covered when you use doctors, hospitals, and specialists within the plan’s network (except in emergencies). To use an EPO to pay for some or all of your addiction treatment, you’d need to choose a treatment provider or facility within your EPO.
• Health maintenance organizations (HMOs). HMO plans typically limit care to providers who have a contract with the HMO. It generally won’t cover out-of-network care except in emergency situations. With this plan, you’ll have a primary care provider, and you’ll need to get a referral for specialty treatment, including treatment for substance use disorder.
• Point of service (POS) plans. You pay less when you use doctors, hospitals, and other healthcare providers that belong to your POS plan’s network. POS plans require you to get a referral from your primary care provider before beginning addiction treatment, and you’ll need to stay within your POS network to have any part of your care covered.
• Preferred provider organizations (PPOs). PPOs do not require that you work with a primary care provider to see specialists. It will cost you less to visit doctors, hospitals, and treatment centers that are in-network with your PPO. And you can use out-of-network providers without a referral, but you’ll typically pay a higher price for services.

What Addiction Treatment Services Are Covered by Insurance?

Drug and alcohol addiction treatment is highly individual. It’s important to consult your primary care physician, mental healthcare provider, or an addiction care specialist, who will assess your situation and work with you to decide the appropriate level of care for your needs. 

Your treatment plan may include one or more levels of care and other services—all of which may be covered, at least in part, by your health insurance plan. These can include:⁴

• Medical detox. During medically managed detox, your treatment team works to manage your withdrawal symptoms as your body rids itself of substances safely and as comfortably as possible. Detox is often the first step in a more comprehensive treatment plan.
• Inpatient rehab. During inpatient rehab, you’ll live at the rehab center for the duration of your treatment, which many include individual and group counseling, behavioral therapies, psychoeducation, and medication (if necessary).
• Partial hospitalization programs. Also known as day treatment programs, partial hospitalization programs (PHPs) offer the same services and interventions used in an inpatient or residential program, but you live at home or in a sober living residence while attending treatment sessions at the facility—typically for 6 to 8 hours a day, 5 days a week.
• Intensive outpatient treatment. Intensive outpatient programs (IOPs) are less intensive than PHPs but provide counseling, therapy, and support in sessions that take place during day or evening hours, often delivered in 3, 3-hour sessions per week. IOPs provide more flexibility, allowing individuals to continue to fulfill their responsibilities at home, work, or school while seeking addiction treatment.
• Standard outpatient rehab. Standard outpatient rehab programs are the least intense form of outpatient therapy and typically offer counseling anf therapy on a weekly or even biweekly basis.
• Co-occurring disorder treatment. For those diagnosed with co-occurring substance use and mental health disorders—which is not uncommon—integrated care programs treat the substance use and mental health disorders simultaneously. 
• Aftercare. Often called ongoing care, aftercare programs provide continued support beyond a formal treatment program and may include living in a sober living residence, attending 12-Step meetings, participating in ongoing counseling and/or therapy, or going to alumni network events. Your treatment team will work with you to develop an aftercare plan.
• Medication for addiction treatment. Depending on the substance you used, your care provider may recommend medication in combination with behavioral therapy to help you manage withdrawal symptoms and cravings.

How to Pay for Rehab Without Insurance

Not having insurance should not deter you from seeking the help you need for addiction. There are other ways to pay for treatment, including: 

• Private pay (including debit and credit). You can use your own savings to pay for drug and alcohol treatment or put it on a credit or debit card.
• Scholarships and grants. Some treatment facilities offer scholarships for eligible individuals. Additionally, there may be local, state, and federal grants available for qualified individuals to help cover the cost of treatment.
• Loans. Ask friends or family members for a loan, or take out a loan from a financial institution.
• Sliding fee scales. Some treatment facilities offer a sliding fee scale, which bases your treatment cost on your income, financial obligations, and other factors.
• Payment plans or other financing options. Some rehabs offer payment plans that allow you to pay for treatment over time rather than all at once upfront.
• State-funded and free rehabs. You can use the Substance Abuse and Mental Health Services Administration’s (SAMHSA) treatment locator to find government-funded, free, and low-cost treatment options.

The Cost of Rehab vs. the Cost of Addiction

While addiction treatment can be expensive, living with an untreated substance use disorder is far more costly. Addiction doesn’t just cost you money—it can also cost you relationships, jobs, your health, and your happiness. Consider getting help an investment in your health and your future because treatment can save your life. If you or a loved one are ready to take the brave first step and begin treatment, the time to do it is right now. 

Whether you have insurance to cover the entire cost of treatment or no insurance at all, getting professional treatment is worth every penny. It can help you break the cycle of addiction and find lasting recovery.

How to Find Rehabs That Accept My Insurance

AAC operates treatment centers throughout the country, offers the complete continuum of care, is an in-network provider with many insurance companies, and provides evidence-based therapies and individualized treatment plans. Call AAC at to connect with an admissions navigator, who can listen to your needs, answer your questions, explain your options, verify your insurance, and help you through the admissions process so you can begin your recovery journey.