Josh Chandler | April 27, 2017

Does Insurance Cover Rehab? How to Check if You’re Covered

You most likely already have insurance, and if you’re going to need rehab, it might be covered. Does insurance cover rehab? We’re here to help you find out.

There are many people who both want and need addiction treatment. Unfortunately, many leave their addiction untreated, because their insurance might not cover rehab. Insurance can be a little tricky when it comes to rehab costs. A person’s coverage will depend on their individual circumstances and policy. As addiction is technically incurable, it can come with high relapse rates, especially when provided through outdated and/or ineffective treatment modalities. As a result, some insurance providers might be unwilling to cover the cost of rehab. So, does your insurance cover rehab? We are offering an informative guide on how to check if you’re covered.

Does Insurance Cover Rehab Services?

Insurance providers can be a little difficult. Even when dealing with other incurable diseases, such as dementia or cancer. Many health insurance policies may not cover the cost of drug and alcohol rehab services. Yet, these services are a medical cost, so your health insurance policy could cover some rehab fees to an extent. The amount you could receive will vary between policies. Therefore, when considering options, it’s essential to check ComPsych insurance coverage for drug and alcohol rehab treatment specifically. It is advisable to call your insurance provider to identify how much they will cover for treatment while researching for the facility that suits you best.

Review the Policy

How does insurance pay for rehab? You will need to review your policy. Some insurance providers may cover outpatient services only for example. In some cases, rehab attendees receive limited coverage for specific outpatient services only. Outpatient drug rehabilitation can provide long-term recovery. Outpatient services generally provide a patient with new and improved ways to live their lives. focusing on relapse prevention, addiction awareness, life skills, nutrition and more.  Even if you’re financially limited by your insurance providers, some help is better than no help, particularly when it comes to life threatening substance abuse.

The Mental Health Parity and Addiction Equity Act

The Mental Health Parity and Addiction Equity Act (MHPAEA) passed in 2008. The federal law grants insurance under the mental health and substance use disorders parity coverage. So, US citizens will receive insurance benefits to overcome their drug addictions. As a result, an insurer must cater to addiction as they would to any other medical conditions. The act, therefore, backups up that addiction is a disease. So, if you want to know does insurance cover rehab? You should read up on MHPAEA. It may be all you need to read to know if you can embark with an effective treatment, which will improve your quality of life.

Public Insurance

Consider public insurance if a private policy doesn’t cover substance or behavioral treatments. Compared to no insurance, public insurance is a more affordable inpatient treatment option. There are some facilities that can be partially or fully subsidized by the government. These rehab facilities will accept either state or federal insurance plans, and they will also welcome both partial or full payments.

Private Insurance

Does insurance cover rehab if you have a private policy? That will depend on your provider. Private insurance is more expensive than public insurance. Yet, you will have a range of healthcare options to choose from. For example, a loved one can receive help if they are struggling to cope with a family member’s addiction. So, how does insurance cover rehab? Private insurance is either paid by an individual or an employer. It is not funded by the federal government or its affiliated agencies. For this reason, privately insured individuals generally have access to a larger range of addiction healthcare benefits. These benefits may include more involved treatment services including inpatient alcohol or drug rehabilitation. This will help remove a patient from a dangerous environment. He or she will also have an extended stay to ensure they make a full recovery. Another benefit of private insurance may include covered detoxing and counseling. A patient can experience luxurious amenities whilst overcoming their addiction allowing them to focus solely on sobriety in a safe, comfortable facility. Healthcare professionals can also provide the support and advice a patient needs for recovery. It is important to note that private insurance can pay for a large fraction of the treatment cost. As a result, you will not have to pay for much of the rehab out of your own pocket, as most might be covered by the deductible.

Consulting Employers

Not everyone living with addiction believes they need help. You only have to read the 2013 NSDUH report to realize how oblivious people can be to their addictions. 95% of people who needed specialty substance abuse treatment, but did not receive it, stated they didn’t need it. So, it is often up to a loved one to learn about the insurance coverage to provide the treatment a person needs.

The Different Rehabilitation Options

There are various rehabilitation programs to help patients overcome an addiction. For example, a patient living with a drug addiction can enter a 24-hour facility. A healthcare professional can provide a personalized treatment plan, following a clinical diagnosis. Patients living with both addiction and mental illness can receive a dual diagnosis. Thanks to a multidimensional approach and holistic methods, patients can recover with dignity. There are treatment options available to help a patient win the battle against addiction. Choose from inpatient and outpatient programs to tackle an addiction head-on.


It is important to know you’re not alone if you’re living with an addiction. Approximately 21.5 million Americans battled a substance use disorder in 2014. If you’re struggling with an addiction or know someone who is, it is important to embark with a treatment. It’s essential to identify if an insurance policy covers alcohol or substance treatments. The last thing you will want to happen is to be ready for rehab, but you’re unable to pay for the treatment. Most insurance policies can cover some or all alcohol and drug rehabilitation programs. So, does insurance cover rehab? You won’t know unless you ask. We recommend discussing the coverage with an insurance provider, or you can submit your insurance details on our insurance verification page and we will do our best to provide more information. If your job offers private insurance, it’s vital to speak to an employer. You can then discuss your coverage to identify your rehab options. Healthcare professionals are passionate about helping you overcome addiction. So, embark with rehab treatment to take back control of your life. Addictions can happen to people from all walks of life. Please feel free to share your story in the comment section below.


Josh Chandler
Josh Chandler
After growing up in Chicago and North Carolina, Josh chose to get help with substance use disorder and mental health in California because of the state's reputation for top-tier treatment. There, he found the treatment he needed to achieve more than five years of recovery. He's been in the drug and alcohol addiction rehab industry for four years and now serves as the Director of Admissions for Resurgence Behavioral Health. Josh remains passionate about the field because he understands that one phone call can alter the course of a person's life.

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