Professional addiction treatment is essential for recovering from substance abuse and behavioral addictions. Unfortunately, the cost of treatment sometimes discourages people from seeking the help they desperately need. The good news is that some types of treatment are covered by health insurance. It’s also possible to take out loans or find other payment options for services that aren’t covered. We developed this guide to help you find rehab that takes Medicaid or some other type of health insurance.

Using Health Insurance to Pay for Rehab

People struggling with addiction often worry about how they’ll pay for treatment. It’s natural to be concerned about your finances, but the benefits of rehab far outweigh the costs. Rehab centers provide lifesaving services that help people break free from their addictions. You shouldn’t have to make medical decisions based on the size of your bank account.

Fortunately, insurance companies are required to provide some coverage for addiction treatment. Every plan is a little different, so check with your insurance provider if you’re not sure what services are covered. Some plans only cover medical detox or outpatient treatment, while others cover residential rehab or hospital-based care.

Before enrolling in a treatment program, make sure you understand the limitations of your insurance coverage. You may have to use an in-network provider or obtain prior authorization before you start treatment. Some insurance providers also have time limits that could affect your care plan.

Costs Associated With Rehab

Once you find a rehab that takes Medicaid or another insurance plan, it’s important to understand the costs of care. Many people are surprised to learn how affordable addiction treatment can be. This is because there’s a lot of misinformation floating around about how much treatment costs. Rehabs that accept insurance may be a lot more affordable than you think.

So, is rehab free with insurance? Not exactly. estimates that addiction treatment typically costs between $3,000 and $20,000. The exact cost depends on the type of treatment and how long it lasts. For example, 90 days of outpatient treatment may cost as little as $3,000. Treatment costs also depend on where the treatment center is and what services are offered.

Rehabs that accept insurance may offer several types of care.

  • Medical detoxification: Detox is a short-term process that involves eliminating drugs and alcohol from the body. During this process, medical professionals provide ongoing monitoring and may offer medication to help relieve severe withdrawal symptoms. Detox typically costs between $1,000 and $1,500.
  • Outpatient treatment: Outpatient treatment makes it possible to get care without staying overnight in rehabs that take insurance. This type of treatment often includes counseling, support groups and family therapy. It usually costs between $5,000 and $20,000 for a 90-day outpatient program. Some programs last longer, which may increase the overall cost of care.
  • Residential treatment: Some people need more extensive treatment, making residential care a good option. Rehabs that accept Medicaid typically have residential programs lasting for 30 to 90 days. The average cost of residential treatment is between $10,000 and $20,000. Some facilities offer luxury rehab for celebrities and high-profile executives. Rehab at one of these treatment centers may cost as much as $100,000.

On the surface, rehab seems expensive. It’s actually quite affordable if you think about how much your addiction has been costing you. Some people spend thousands of dollars per month on drugs and alcohol. Others find themselves paying fines and legal fees related to their substance abuse. These costs can add up quickly, exceeding what it would cost to pay for a comprehensive treatment program.

Alternative Payment Options

If you don’t have insurance or your insurance doesn’t cover the full cost of treatment, don’t lose hope. Alternative payment options are available to help you afford lifesaving care.


Some companies have programs designed specifically for people who need help paying their medical expenses. You may be able to qualify for a rehab loan under one of these programs. Prosper Healthcare Lending and My Treatment Lender are two lenders offering this type of funding. Taking out a rehab loan can help you cover the cost of treatment without resorting to high-interest financing options.

If a rehab loan isn’t an option, consider applying for a personal loan at your bank or credit union. Personal loans typically have lower rates than credit cards, reducing the amount of interest you pay over time. With a personal loan, you also know exactly how much you have to pay back each month.


Some rehabs that accept insurance offer scholarships for people who can’t afford treatment. The funds typically come from benefactors who want to help other people recover from their addictions. Scholarships aren’t always advertised, so ask if any funds are available to help you pay for your care. You may be required to prove financial hardship or meet other requirements before receiving scholarship funds.

Free Treatment Programs

It may surprise you to learn that some facilities offer addiction treatment at no cost. Many of these programs provide the same quality care as programs costing thousands of dollars per month. The difference is that you may have to wait for months or even years to get into one of these free programs.

This option is best for people who can wait for treatment without putting their lives at risk. If your addiction is severe, you may need to look for a rehab that accepts Medicaid or another insurance plan. Before choosing a free treatment program, review your options carefully. Make sure you understand what services are included and how long each program lasts.

Other Payment Options

If you don’t qualify for a scholarship and can’t get a loan, there are some other options. First, ask your loved ones if they can help you cover the cost of treatment. Someone may be willing to gift you the funds or give you a no-interest loan. Next, check with local nonprofits to see if they offer treatment funding. Finally, consider using your credit card to cover the services you need.

Sunlight Recovery offers medical detox, residential treatment and sober living services. To get the help you need to recover from your addiction, contact us at (844) 941-3817. The sooner you call, the sooner you can start recovering.