Cost of Addiction Rehab: What to Know About Insurance Coverage

cost of addiction rehab

There’s no getting around it: the cost of addiction rehab may incur, as with many medical treatments, can be steep. At “high-end” rehabilitation facilities (the ones that many celebrities check into), one day of treatment can run anywhere from $1,200 to $2,000. Most residential treatment facilities range from $300-$500 per day, which is less extreme but still difficult for the average person to afford. Transitional living facilities, also known as halfway houses, start at about $35 a day but may not offer all the resources and attention that a traditional and more comprehensive rehab center would.

Substance Abuse and Insurance Coverage

Luckily, there has been a recent push for insurance to cover substance abuse treatment. In 2010, the Mental Health Parity and Addiction Treatment Act went into effect, meaning that insurance providers have to be just as generous in their coverage of mental health and addiction treatment as in their coverage of medical and surgical treatment. However, it’s important to note a loophole in this act – insurance plans are not required to offer mental health and substance abuse coverage, and the parity law doesn’t apply to companies with fewer than 50 employees or individual coverage plans (NBC). If you don’t have the right insurance plan, the cost of addiction rehab may still come out of pocket, meaning you are fully responsible for the cost.


When insurance companies do state that they cover the cost of addiction rehab, it will often be for the period of detoxification and not for an extended stay in a rehabilitation center. And when coverage is offered, it is more likely to be specifically for alcohol abuse rather than the more general “substance abuse” (NewsOK). This inconsistency in coverage may be addressed by the law as substance abuse becomes a more visible problem, but for now it is important to identify what exactly your insurance covers.Read more:

Those seeking a rehabilitation program covered by their insurance shouldn’t necessarily be discouraged.

It can be possible to have a stay at a rehab facility covered by your insurance through a combination of self-advocacy and working closely with the facility itself. Many treatment centers will perform an assessment of a patient and present the case to their insurance company. Once the case has been brought to the insurance company’s attention, it must meet certain criteria set by the American Society of Addiction Medicine. These criteria are generally related to the length, level, and frequency of a patient’s drug use. The treatment provider will also need to provide regular updates of the patient’s improvement to the insurance company.

If you want to enter a treatment program but are worried about the cost of addiction rehab may incur, it’s important to do your research first. Find out the cost per day of local facilities, and then if you have an insurance policy, read it closely to figure out exactly what it covers. If it is unclear, work with the rehab facility or a credible treatment placement service like Alcohol and Drugs Rehab to see if you can advocate to have your treatment covered.

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