Insurance and Rehab Coverage: What you Need to Know

Going into rehabilitation is a major decision that allows you to take back control of your life. We consider it a major decision because you get to turn your life around for the better. However, it is also a major decision when the financial aspect of this process is considered.

You can visit to find out how much alcohol rehab costs. That linked article will give you an idea of how much individuals have to pay to get their lives back on the right track.

Due to the high cost of treatment, many folks are turning to their insurance as a way to cover these expensive bills. While this is the best way to go, some folks who use this payment method do not fully understand the coverage provided by their coverage.

Therefore, to ensure that you have a full understanding of your insurance coverage in connection to your rehab program, we have written this article just for you. We will share vital information that will allow you to take full advantage of your insurance plan.

What Drug and Alcohol Rehabilitation Insurance is

First of all, you need to understand that there is no special insurance designed for substance abuse addiction rehabilitation. Instead, your normal health cover can offset the bills that you will incur during the rehab period.

Therefore, rehab insurance is simply using your regular health plan to cover the basic expenses of the rehab program. There is a need to emphasize the word “basic” in the sentence above because your cover isn’t designed to cater to luxury services your rehab center might provide.

Most centers accept insurance as a payment method; however, not all plans are designed to cover the services provided by these facilities. Therefore, before you chose a center, confirm with them if your insurance can cover the services they provide.

Does Insurance Cover Private Rehab?

The answer to the above question is yes. As we said your health insurance covers all basic rehab services including private programs. The coverage power of your insurance is backed by the Affordable Care Act (ACA) which was passed into law in 2010.

As a result of this act, substance addiction treatments are categorized as an essential health benefit thereby mandating all health insurance to cover addiction care.

Furthermore, the ACA in conjunction with the MHPAEA (Mental Health Parity and Addiction Equity Act) strengthens the right of every American to get health coverage.

Therefore, no provider is permitted to say no to anyone seeking to be insured as cover for their addiction treatment. This includes addiction that was in existence before the time the individual requested to be covered.

So, irrespective of what stage you find yourself in your recovery journey, the severity of your addiction, or the type of program you are enrolling for, there is coverage for your basic expenses. Check Optima Health rehab to find out more about these basic expenses.

Insurance Types and their Rehab Coverage

All types of insurance are mandated by the Affordable Care Act (ACA) to cover substance addiction treatment. Some insurance types with this coverage are listed below:

  1. Private policies
  2. Medicaid program

iii. All marketplace plans

It is expected that these plans and policies will provide the same coverage degree as medical and surgical services for rehab.

The nature of the cover plan you choose determines the additional benefits that are available to you. Therefore, it is important that you choose your plan carefully: Do not be in a haste to select a plan. If you already have a plan, then you need to find a rehab that will be a perfect fit for the coverage you have gotten to ensure you don’t miss out in any way.

Additional benefits you can enjoy are also dependent on the state where you live. There are some states with better policies when compared to certain states in the U.S. You can read this article to find out the states with the best health care rankings.

One thing is certain; your provider cannot place a financial limit on your annual or life coverage. Nevertheless, no plan is designed to cover luxury services as we mentioned earlier on. What you might get at best is partial coverage of such services. The possibility of getting this still depends on the particular plan and company that provides the coverage.

Therefore, it is important to ask your provider about the nature of the cover plan you want to choose or you want to choose to enable you to get the best out of the insurance.

Services that Most Insurance Plans Cover

When you choose a cover, these are the rehabilitation programs and services the plan will take care of:

1. Outpatient Treatment

This refers to a program whereby the patient only comes to the center for treatment but isn’t admitted. Your doctor will determine if this is the best program for you depending on the severity of your addiction. With this option, you can live your life normally.

2. Inpatient Treatment

For this option, you will have to stay in the center. All other regular activities will have to be suspended until the program is over. During the time you will be in the center, you will receive daily meals and all-around supervision. You will also get medical care, detox, therapy, counseling, and even aftercare planning.

Some centers are designed with hospital settings while others have residential settings. Irrespective of the setting, you will have to live in the facility until your rehab is complete.

3. Detoxification

Unlike the other services discussed above, this is actually a treatment rather than a program. This procedure involves the elimination of substances that are left in the system of the patient. A patient undergoing either of the programs above can be treated with this procedure.


Insurance is a great way to cover the cost of your rehab treatment. While all plans provide basic treatment coverage, most plans do not cover luxury services. So, before you enroll in a rehab program, find out all you can about the coverage you have and confirm that it is suitable for the program.

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