How to Pay for Rehab

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There are various methods you can use to go to rehab for alcohol or drug addiction. Individuals can pay for rehab through public health insurance, private health insurance, or payment plans that they agree to with their treatment provider.

While financing options, public insurance, or personal funds are all viable options to pay for treatment, treatment is very expensive, so state-funded treatment facilities are often very desired by patients seeking treatment. Unfortunately, stated-funded rehab may be very difficult to access, with wait time for an opening possibly ranging from weeks to months. That is why private insurance is often the most preferred method of paying for addiction treatment.

This page will provide answers about how much rehab costs, different ways to pay for rehab, the insurance providers that cover rehab treatment, and how to obtain coverage.

How Much Does Rehab Cost?  

One of the major questions people have when it comes to addiction is: How much does it cost to pay for drug or alcohol rehab? The price of alcohol or drug rehab treatment varies based on the type of care that is needed. Inpatient treatment provides a high level of care and is typically more expensive than outpatient treatment, but both can provide care that helps patients work toward recovery.

On average, the cost of inpatient treatment may include the following:1

  • Detox only (7 day minimum): $600-$1,000 per day.
  • 30-day: $400-$900 per day.
  • 60-day: $300-$800 per day.
  • 90-day: $200-$700 per day.

For outpatient treatment, on average the cost may include the following:1

  • Intensive outpatient (IOP): $100-$500 per session.
  • IOP with housing: $3,500-$5,000 per week (housing is not typically offered)
    (additional $400-$900 per month beyond the price of the program).

Again, prices vary depending on the type of treatment, the facility, amenities offered, the level of care, and the abused substance—as well as if there are cooccurring disorders.

Covering the Cost of Rehab

There are various ways that people can pay for addiction treatment. Some of those options include free rehab facilities, state-funded centers, insurance, payment plans, or financing. Still, while there are many options, with limited access and the possibility of long wait times for free or low-cost treatment facilities, most people use insurance or private pay to pay for rehab.

Private Health Insurance

Is rehab covered by insurance? With a few exceptions, most insurance companies are required to cover some or all of the cost of addiction treatment.2  

In 2008, the Mental Health Parity and Addiction Equity Act was passed. This act requires insurance providers cover care for substance use disorders (SUDs) and mental illness at an equivalent level to physical health disorders.3

The Affordable Care Act (ACA) further extended the Mental Health Parity and Addiction Equity Act (MHPAEA) coverage by requiring health plan and insurers to offer prevention, screening, brief interventions, and additional treatment for SUDs.3 The parity laws apply to intensive and standard outpatient services, inpatient treatment, partial hospitalization programs, and residential services.2

While the MHPAEA and the ACA require most of the insurance providers to cover at least some level of drug or alcohol abuse treatment, each company and policy is different, so coverage may vary.

Some of the elements that may impact coverage include the type of policy (HMO, PPO, HRA, HDHP), if the patient is using an in-network provider, and if the insurance plan is a public insurance (Medicare or Medicaid).

The Affordable Care Act (ACA)

If a person doesn’t have private health insurance through an employer or Medicare or Medicaid, the ACA gives people options for obtaining insurance. One of the benefits of the Affordable Care Act is that people aren’t penalized for having preexisting conditions. If you or a loved one are struggling with addiction, you can apply for a healthcare policy through the ACA marketplace and receive coverage for treatment.

The ACA marketplace has plans that cover 10 “essential health benefits,” including treatment for substance use disorders and mental health disorders. Under the ACA, these disorders are treated just as any other medical condition, providing many people with the means to begin their recovery journey and get the help they need.

Financing and Private Funding

Going to rehab is an important first step in recovery and an investment in one’s future, but the cost can feel overwhelming. These costs can vary depending on:

  • The length of stay.
  • The type of facility.
  • The facility location.
  • Types of treatment.
  • The amenities offered.

Paying for rehab can be significant expense, but there are options available so that you or a loved one can get necessary help. Private funding or financing is a great way to help pay for rehab, particularly if you or a loved one doesn’t qualify for other types of funding, like federal or state assistance. Private funding and financing may include:

  • Personal savings.
  • IRA
  • 401(k) plan.
  • Contributions from loved ones.
  • Home equity loan.
  • Personal loan from a bank.

If private funding isn’t available, addiction treatment centers may offer scholarships to help cover the costs of rehab. Make sure to ask admissions advisors about scholarships when looking for rehab centers.

Treatment centers may also offer financing options, which allow a person to make payments even after they are discharged. The treatment center may work with a third party to create a loan package that makes rehab accessible to those in need.

Local and State-Funded Rehab Programs

If you or a loved one are wondering how to pay for rehab and have limited financial resources, state-funded rehab centers may be an ideal option.

State-funded rehab programs use government money to offer treatment to people struggling with addiction such as detox, treatment, and support services to start the road to recovery. There are various types of state-funded rehab programs including inpatient, outpatient, hospitalization, and aftercare support.

It’s important to remember that requirements for state-funded rehab can vary by state. If you or a loved one are seeking treatment, check which options are available in your state so you know exactly what to expect. State-funded programs typically require the following:

  • Proof of residence.
  • Proof of income status.
  • Proof of legal residence in the U.S.
  • Personal information on addiction history (e.g., duration, severity)

After this information is provided and the need for addiction treatment services is verified, treatment can be provided.

If you need assistance finding state-funded rehabs, the Directory of Single State Agencies for Substance Abuse Services offered by the Substance Abuse and Mental Health Services Administration (SAMHSA) has contact information for each state’s governing substance abuse agency. There is also a list of treatment options available in each state, so you can find a rehab center that offers the types of services you need.

Does Insurance Cover Rehab for Drugs and Alcohol?

Is rehab covered by insurance? Yes, for most insurance policies rehab is covered at least partially. So, how do you get insurance to pay for drug or alcohol rehab?

The best way to find out what your insurance covers is to call or visit their website. Or, you can click here, or fill out the form below.

Blue Cross Blue Shield, Aetna, Kaiser Permanente, and Humana are four of the insurance companies that likely cover at least a portion of the cost of alcohol or drug rehab.

Paying for Drug Rehab Without Insurance

For people who do not have insurance, there are other options. Some rehab facilities may offer sliding-scale payment options, in which the cost of treatment is dependent on a person’s income and their ability to pay. This option typically applies to low-income patients, but there is the possibility of financial aid for rehab.

Medicare and Medicaid

How do you use Medicare or Medicaid to pay for rehab? Medicate and Medicaid may also be options to help with accessing addiction treatment.

Medicare is a federal health insurance program. To qualify, you must be one of the following:4

  • 65 or older.
  • Younger and disabled.

Medicaid is a program that is jointly funded by states and the federal government. It provides free or low-cost healthcare to many low-income people, regardless of age, based on income and family size.5 Coverage and eligibility vary depending on your state of residence. Patients typically pay nothing for medical expenses, although a small copayment may be necessary.5

Both Medicare and Medicaid may provide insurance support or assistance with substance abuse treatment and rehab.

Local Resources for Drug and Alcohol Addiction 

It can be difficult to find alcohol or drug treatment for those who are uninsured, but there are options available. Be sure to check out your local rehab programs to find out if they offer any payment plan or can help you with financing in any way. The Substance Abuse and Mental Health Services Administration (SAMHSA) has a treatment locator that can help you find local treatment facilities that may offer alternative payment options.

To read more about various ways to pay for rehab, click the links below:

While rehab can seem overwhelming and expensive, there are many ways you can afford treatment. Don’t let the cost of rehab stop you from seeking treatment to start on your path toward recovery.

Additional Resources on Health Insurance Providers and Coverage Levels

Visit the links below to find out more about your health insurance coverage levels, how to get your insurance company to pay for drug and alcohol rehab and also how to pay if you don’t have insurance.

Additional Resources on Drug and Alcohol Rehab

Whether you’re looking for a specific type of rehab treatment, substance related info or additional guides, below are some our popular and recommended.

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Kindra Sclar is a Senior Web Content Editor for American Addiction Centers and Before joining the company, she worked for more than 8 years as a print and web editor for several print and online publishers. Kindra has worked on content editing for first responders, including firefighters, public safety communications, and emergency medical services. She has a bachelor’s degree and a master’s degree in English.
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