If you or someone you know needs addiction treatment, it’s important to understand how much the program will cost and what payment options are available.
Most health insurance providers cover addiction treatment. If yours does not, it’s worth looking into private financing or scholarships. Some programs offer sliding scale fees, and credit cards are also an option.
Private Financing
A person’s family and friends may be willing to loan them money to help pay for drug or alcohol rehab. State or local programs may also offer financial assistance for drug rehab, including low-cost treatment facilities and job training.
If personal loans are not feasible, there are many credit card companies that offer deferred interest plans or lower rates for medical expenses, including addiction treatment. You can also consider using your home equity to fund drug or alcohol rehab. Some faith-based organizations offer sponsorships for individuals seeking addiction treatment.
Scholarships
A person's addiction can have a devastating impact on their financial situation. It's not surprising that many people who need treatment do not have the means to afford it.
Fortunately, scholarships can help. These are available on a need-based basis and can cover part or even all of the cost of care.
There are several ways to find a scholarship for addiction treatment. One option is to contact a local rehab facility directly and ask about availability. Another is to call your state government's website and look for a list of addiction treatment providers in your area.
Subsidized Insurance
Many people in recovery from drug addiction find that their health insurance will cover most or all of their care. For those who do not have insurance through a private or employer-sponsored plan, the Affordable Care Act (ACA) makes it possible to get subsidized coverage in exchange for a monthly premium and deductibles and copayments.
The ACA also requires that plans offer parity between mental health and substance use disorder benefits on the one hand, and medical/surgical benefits on the other. This is intended to make it easier for individuals to access treatment.
Health Insurers
Health insurers offer drug rehab coverage that can help ease the cost. Private health insurance plans and employer-subsidized coverage are available, as well as government-run insurance programs like Medicaid for those who qualify based on their income levels.
The ACA mandates that health insurance companies cover behavioral health, including addiction treatment services. Many marketplace plans provide comprehensive coverage for mental and substance abuse disorders, but it’s important to check individual policy details.
Many addiction treatment centers accept private insurance plans and can work with you to verify your coverage. It’s important to choose an in-network provider to ensure streamlined billing and reimbursement processes.
Credit Cards
Whether through credit cards or other methods, people can often use their personal savings to pay for treatment. This option can help avoid the stress of finding new funds, which can be difficult for those who are recovering from addiction.
Addiction can wreak havoc on families and finances. Savings can disappear and debts pile up. It’s essential to work with a counselor or financial therapist to uncover unconscious mindsets and beliefs about money that can trigger destructive behavior.
Next Step, a company founded by a former addict, offers a prepaid card that can be co-signed by someone responsible and set to specific daily spending limits. The cards can help prevent impulsive and self-destructive spending that commonly accompanies addiction recovery.
Sliding-Scale Fees
Some drug treatment programs offer sliding-scale fees for their services. These fees are based on a client’s income and other financial responsibilities. Sliding-scale fees can help people who otherwise would be unable to afford therapy get the care they need.
Some private insurance providers and some military insurance cover addiction treatment. However, these coverages tend to be limited.
Sliding-scale fees are often determined with each individual client at the beginning of therapy. Some therapists choose to ask for proof of income, while others trust their clients to be truthful with them regarding their finances.
Financing After Discharge
The cost of treatment can be a barrier to getting the help you need. But it doesn’t have to be.
Some family members may be willing to help with money for rehab. This could include funds from a savings account, an IRA or 401(k) or home equity.
Depending on your circumstances, you can also apply for addiction treatment grants or scholarships. These can provide free or reduced-cost care for people without insurance.
