Paying for Residential Programs

Residential drug rehab, or inpatient addiction treatment, can be pricey. Combining medical care, psychotherapeutic treatment and support, and room and board often adds up to a significant bill.

Many families are worried about their choices: opt for the comprehensive care that improves the odds of long-term recovery and pay the hefty bill, or pay less for outpatient treatment or a combination of addiction treatment services that may or may not address all their addicted loved one’s needs.

The good news is that there are a number of ways to cover the cost of inpatient drug rehab. Families almost always used a combination of options in order to pay the whole bill. Here are the most common sources utilized to pay for drug rehab.

Health Insurance

Health insurance should always be the first stop when it comes to pulling together the funds to pay for treatment. Substance abuse treatment services are one of the 10 “elements of essential health benefits” included under the Affordable Care Act. This means that all health insurance policies that are purchased on the Health Insurance Exchanges or that are provided by Medicaid must cover substance abuse treatment services.

Here’s where it can be confusing – nowhere is it defined exactly which substance abuse treatment services must be covered. Nor are there any indications how much should be covered, either in percentage or dollar amount. Therefore, there can be some tussle back and forth between the patient and the insurance provider as they determine whether or not inpatient care will be covered.

Many providers, for example, would like proof that residential treatment is “medically necessary” and the increased chance of relapse if treatment occurs on an outpatient basis does not fill this requirement. Other providers may required that patients undergo outpatient treatment first and only if this less intensive measure proves ineffective will they agree to cover inpatient care.


Many families turn to personal savings and determine whether or not they feel comfortable using all or part to cover the cost of drug rehab. Funds allocated for others purposes (e.g., retirement, college, etc.) may be tapped if necessary, but emergency funds and investments are usually the best places to start. Additionally, the sale of a luxury item can help to increase the amount of cash readily available for payment for treatment.

Personal Loan

Often extended family members are willing to contribute to the cause of treatment. In some cases, it may be appropriate to create a formal contract for the loan, providing how and when the money will be paid back – perhaps by the addicted person once they have completed recovery. Others may prefer to make a gift of the funds in order to cover part of the cost of treatment.


Most families will finance all or part of the cost of addiction treatment. Many families will be able to create a payback plan that makes sense for their schedule at a monthly payment that works for their budget. All or part of the cost of treatment can be covered through financing. Rates and payback plans are determined on a case-by-case basis.

Get Started

Money is often cited as an obstacle to recovery but it need not stand in the way of your loved one’s ability to address addiction through treatment. Contact us at 844-496-9429 and discuss your options for securing a spot in the right treatment program for your addicted family member.

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