Paying for Addiction Treatment: Everything You Should Know

Getting help for drug and alcohol addiction is a huge step toward recovery, but many people are concerned about how they will pay for rehab. Drug and alcohol addiction treatment can vary in cost based on many different factors, and understanding how insurance can cover addiction treatment is crucial before booking a stay.

Thankfully, there are several different ways to pay for rehab, including insurance, government support, financial aid, and personal loans. Knowing your options today can help you make informed decisions tomorrow.

This article explains everything you should know about paying for addiction treatment programs. It also explores each of the factors influencing the cost, plus why paying for treatment services is always worth the investment.

What Factors Affect the Cost of Rehab?

The cost of drug and alcohol rehabilitation depends on many factors. Understanding these can help you and your loved one prepare for costs and choose what is best for you.

The variables that affect the cost of rehab include:

Level of Care

There are two major levels to keep in mind:

• Inpatient (Residential) Rehab: Inpatient rehab, also known as residential treatment, involves staying at the treatment center on a full-time basis, providing 24/7 medical attention, therapy, meals, and structured support. Due to the intensive care and housing, inpatient rehab is more expensive.
• Outpatient Rehab: You visit treatment at appointed times but remain at home. Outpatient rehab is typically less costly than inpatient rehab, yet requires a solid support system beyond treatment to hold you responsible.

Duration of Treatment

Rehab length varies according to individual needs, severity of addiction, and response to treatment. Most short-term treatment programs last 30 to 90 days, while longer-term inpatient treatments last six months or more.

The longer you stay, the more money you’re likely to pay. The shorter your stay, the less you’re likely to spend. However, long-term stays may be unavoidable for patients with severe addictions or co-occurring mental health disorders such as anxiety or depression.

Location of the Facility

Rehabilitation facilities in more populated cities or coastal areas tend to be more expensive because of increased operational expenses and demand. Rural treatment facilities could be less expensive but more difficult to access. Others opt for treatment facilities outside of their home state to distance themselves from triggering situations (which may include travel costs).

Amenities and Services Provided

Standard rehab centers offer helpful medical care, treatment, and addiction support at a reasonable cost. Some also provide public assistance, accept private insurance, and offer free community group therapy or family therapy.

In contrast, luxury or executive rehab centers may offer private rooms, gourmet cuisine, alternative treatments (like yoga, acupuncture, and horse therapy), and leisure activities such as swimming, hiking, and spa treatment. These extra features may increase the costs, although it may provide a more comfortable stay during recovery.

Medical Detox and Specialty Treatment

Detoxification, or detox, is usually the first step of drug rehab, which enables you to quit drugs or alcohol safely under the care of a doctor. The cost of detox services depends on the severity of your withdrawal symptoms and whether you need medication-assisted treatment (MAT).

Some people may need specific types of assisting therapies, including treatments for:

• Co-occurring disorders (mental illness and substance abuse)
• Trauma-informed treatment
• Gender-specific treatment (such as treatment for postpartum women)

Keep in mind that each of these therapies may add to the overall cost of treatment programs.

Myths About Paying for Rehab

Many people do not address addiction because they’re concerned they cannot afford it. But the truth is that addiction treatment may be much more affordable than you first believed.

Here is a list of common addiction treatment payment myths so you can feel more confident about beginning your recovery journey.

Myth #1: Rehab is Only for Rich People

Many people believe you can only get help for addiction if you can afford the luxury rehab centers. While there are indeed luxurious options with private rooms, gourmet food, and rare therapies, they are not the only ones. There are numerous affordable rehab centers that offer good treatment at low costs, including:

• Government-funded rehabilitation centers that offer low-cost or free treatment based on financial status
• Nonprofit rehab centers that use donations and grants to offer affordable treatment
• Faith-based programs like The Salvation Army may offer addiction support for free
• Sliding-scale rehabilitation clinics charge fees according to a person’s financial situation
• Various alcohol rehab programs offer financial aid, grants, and scholarships to make treatment more accessible

The truth is that there are treatment options for everyone, regardless of budget or insurance coverage.

Myth #2: You Can’t Go to Rehab if You Don’t Have Insurance

Health insurance can help lower the costs people pay for addiction treatment, but it is not the only way to pay for rehab. People without insurance have several other ways to get money for treatment, including programs like Medicaid and Medicare (which pay for addiction treatment for those who are eligible).

Most rehab facilities offer payment plans and financing options to allow individuals to pay in installments. Some accept treatment block grants — like the Substance Use Prevention and Treatment Block Grant (SUBG) — which provides financial assistance to public and non-profit entities and allows more individuals to access lower-cost substance misuse treatment.

Another option is to raise money through your network. Friends, family, and even strangers can contribute towards rehab expenses through crowdfunding websites such as GoFundMe.

The bottom line? Not being insured does not prevent an individual from receiving life-saving substance abuse treatment.

Myth #3: There Are No Free Treatment Centers

Contrary to popular belief, there are several free or low-cost rehab programs available around the country.

Groups like:

• SAMHSA-funded treatment programs offer free or low-cost rehab services according to financial need.
• County and state health facilities can have state-funded rehabilitation clinics.
• Religious and nonprofit groups, including Teen Challenge and Catholic Charities, provide addiction recovery programs for low or no fees.

Free services may come with waiting lists or curtailed services, but they still supply essential care and aid to those in need.

Myth #4: Luxury Rehab is the Only Effective Option

High-end rehab centers may offer more amenities and comforts, but they’re not necessarily more effective than traditional rehab programs. In fact, many standard and nonprofit rehabilitation centers offer the same level of quality care, including medical detoxification, withdrawal management, group and individual therapy, and relapse prevention planning.

The truth is that you do not need costly, high-end treatment centers to get better. What matters the most is to find a program that fits your individual needs.

Myth #5: You Have to Pay for Rehab Upfront

Another misconception is that rehab requires upfront payment in full before starting the recovery process. While some private facilities may request payment in advance, a majority of rehab facilities offer flexible payment plans that enable people to pay in installments.

You can begin treatment immediately and pay later through deferred payment plans. You may also have access to sliding-scale fees, which vary by treatment or income.

The majority of rehab centers understand that financial issues are common among those who suffer from addiction and offer options to help make the treatment more affordable. The truth is that assistance is available to anyone who wants to recover from substance abuse.

What Are Some Options for Paying for Rehab?

You have many ways to pay for drug and alcohol rehab.

Here are some of the most common payment methods for addiction treatment:

Private Health Insurance

Most private health insurance plans offer coverage for some or all of your addiction treatment. This is because the Affordable Care Act requires health insurers to cover at least partial coverage of substance abuse treatment as an essential health benefit.

To use your private insurance for rehab:

• Check Your Policy: Speak about coverage amounts and in-network rehab centers with your insurance provider.
• Get Approval: Some treatment plans need approval before insurance coverage.
• Compare Costs: Out-of-network substance abuse treatment centers typically cost more out-of-pocket than in-network providers.

Medicare and Medicaid

Medicaid is a state and federally funded program that provides health coverage for low-income citizens. It may cover detox, inpatient services, and outpatient substance abuse treatment so you can access cheap rehab in your area.

To qualify for Medicaid rehabilitation coverage, you must:

• Meet income and eligibility standards (differing by state)
• Join a treatment program that Medicaid approves.
• Get prior permission if required.

Medicare provides coverage for elderly individuals (65+) and certain disabled individuals. It covers:

• Part A: Inpatient hospital detox and rehab stays
• Part B: Outpatient therapy and counseling
• Part D: Certain prescribed drugs for treating addiction

State and Federal Assistance Programs

Most states offer publicly funded rehabilitation programs for individuals with financial issues. Most of these programs offer income and residency requirements, so be sure to call “211” to get more information in your local area.

SAMHSA Grants

The Substance Abuse and Mental Health Services Administration gives money to states to treat addiction. Some treatment facilities get this money to provide free or low-cost treatment. These grants are designed to support both substance abuse prevention and treatment strategies for various vulnerable populations.

To get state-funded rehab sources:

• Go to the SAMHSA Treatment Locator.
• Call local health departments for existing programs

Veterans’ Benefits

The Veterans Affairs Department (VA) offers rehab services to eligible veterans. VA benefits cover inpatient, outpatient, and medication-assisted treatment (MAT). You can usually apply through your nearby VA medical center.

The VA also supports various alcohol rehabilitation programs to help veterans recover from substance abuse. Visit a nearby location to ask about coverage and learn more about the services offered to you.

Financing and Payment Plans

Most rehabilitation centers also provide payment plans to help patients pay for expenses. Payment arrangements may be through:

• Monthly Installments: Some centers do take installment payments instead of paying all at once.
• Sliding Scale Fees: Some rehabs scale their charges in relation to a person’s income.
• Treatment Loans: Health credit plans like CareCredit or personal loans can be utilized to fund the expenses.
• Grants and scholarships: Some treatment facilities and non-profit organizations offer financial help to qualifying individuals.

Employer Assistance Programs (EAPs)

Some companies have Employee Assistance Programs (EAPs) that offer confidential drug treatment assistance to professionals. They may:

• Cover counseling and rehab services.
• Assist in locating treatment options
• Help with keeping your job under FMLA (Family and Medical Leave Act)

Employees may talk to their HR department to discover what benefits they have available.

Crowdfunding and Community Support

If none of these funding sources are accessible to you, individuals can still consider:

• Crowdfunding Websites: Websites like GoFundMe or Fundly help individuals raise money from friends, relatives, and neighbors.
• Non-Profit Help: Charities like Shatterproof, Phoenix House, and The Herren Project offer financial help.
• Faith-Based Assistance: Many churches and religious groups help cover the cost of addiction treatment.

Why the Cost of Rehab is Worth It

Investing in drug and alcohol rehabilitation may seem like a lot of money, but the payoff is far greater than the cost.

Here’s why:

Rehab Can Save Your Life

Addiction to drugs and alcohol is life-threatening, and it can lead to overdoses, chronic health problems, and mental health problems. Addiction treatment provides medical care, detox support, and counseling to help you safely recover from addiction. Paying for rehab means paying for a longer, healthier life.

Rehab Makes Your Body and Mind Feel Good

Addiction damages your body and your mind. Long-term drug use can cause liver disease, heart disease, brain damage, anxiety, depression, and more. Rehab gives you medical care, food support, and mental health services to aid in your physical and emotional recovery.

Rehab Can Save You Money in the Long Run

Though rehab has a front-end cost, addiction is also very costly. When you are in active addiction, you might experience:

• Damage to Your Finances: Spending large amounts of money on drugs or alcohol, getting into debt, and feeling financially insecure.
• Medical Expenses: Hospital visits, emergency care, and treatment of substance-related disorders.
• Legal Costs: DUI or other charges, fines, and lawyer’s fees.
• Job Loss and Lost Income: Reduced work performance, job loss, and financial insecurity.

Taking care of your addiction early can help you avoid these long-term money problems and take charge of your finances once again.

Rehab Rebuilds Relationships and Supports Families

Alcohol and drug abuse typically worsens relationships with family and friends. Trust is lost, communication deteriorates, and loved ones become emotionally harmed. But rehab treatment offers family therapy and counseling structures to help you mend relations, rebuild trust, and build solid family relationships.

Rehab Offers Necessary Tools for Lasting Sobriety

It is hard to quit drugs or alcohol by yourself. But rehab provides:

• Techniques for coping with cravings and triggers
• Relapse prevention techniques
• Life skills to deal with stress and regain harmony
• Assistance through personal and group guidance and alumni student programs
• Support for long-term recovery so you can live a purposeful, drug-free life

Addiction leaves people feeling powerless, but rehab provides structure, direction, and a path to recovery. Having the opportunity to regain independence, fulfill career goals, and restore self-esteem makes rehab a life-changing investment.

Pay for Rehab, Invest in Your Life

Rehab can be expensive, but addiction is even more expensive, both emotionally and financially. Professional intervention has long-term benefits, including better health, restored relationships, safety, and a happy, sober life. There is no price that can compare to the value of being granted a second chance at life.

Curious about investing in addiction treatment for yourself or a loved one? Learn more about addiction treatment from My Time Recovery.