Learn / Cost of Rehab and Insurance Coverage: Frequently Asked Questions
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Cost is a major concern for people seeking addiction and mental health help. To support you in making an informed decision about treatment, we answer some of the most pressing questions about costs and financing options for addiction treatment.
It depends. There’s a huge variety of treatment options and therapies for alcohol or substance abuse, which is why you can’t really find a standard price for rehab.
Most 30-day addiction treatment programs in Europe are priced from $10,000 to $25,000. However, in countries with higher costs of living, such as Switzerland, the price of residential rehab can start at closer to $40,000 per week.
It’s important to note that you do have a number of different payment options available to help cover the costs of treatment.
Luxury rehab prices can fall on a wide spectrum, from affordable to ultra-premium. This depends on several factors.
There’s no internationally standardized requirement for a rehab center to identify as “luxury”, but the ones that do tend to be upscale, residential treatment facilities. This doesn’t mean that they have to cost an exorbitant amount.
In the U.S., luxury rehab programs generally cost between $25,000 and $50,000 per month. Since the Affordable Care Act (ACA) was passed, most of these centers accept insurance.
If you travel to a country with a lower cost of living for rehab, treatment tends to be less expensive. Many residential rehabs in Southeast Asia that meet LuxuryRehabs.com’s luxury and quality criteria are a fraction of the cost of luxury treatment centers in the U.S. Most luxury rehabs in Thailand, for example, are priced under $15,000.
On the premium end of the spectrum, you can find single-client luxury addiction treatment centers that cost upwards of $100,000 per week.
This can vary greatly: different types of mental health issues require different therapies and levels of care.
The most common types of treatment settings are inpatient (residential rehab), intensive outpatient programs (IOPs), and partial hospitalization programs (PHPs). Each offers a different mix of intensiveness, clinical hours with staff, and time spent on-site, which affect total program costs.
In outpatient programs and PHPs, you’ll go home each day after treatment. In an inpatient or residential treatment program, you’ll live onsite at a treatment facility for an extended period while receiving daily care. Many rehabs also offer programming in an online or hybrid online/in-person format.
Below are the average costs for inpatient, outpatient, and partial hospitalization programs.
Inpatient Program Costs
In the United States:
In Asia, South Africa, and Central America:
Outpatient Program Costs:
In the United States:
Partial Hospitalization Program Costs
A sober living home is a supervised home that residents stay in after they’ve completed their addiction treatment program. The goal is to provide you with a stable environment and accountability for long-term sobriety following a formal treatment program.
A comfortable sober living home can be comparable to rent, with additional fees for administrative overhead and structure. Just like with rent, location will also influence final costs.
It’s difficult to pinpoint definitive, average costs of sober living houses across the United States because the sober living homes industry isn’t fully regulated.2
Some reputable luxury rehab centers offer sober living options for clients. These can be priced over $10,000, though at this pricing you’ll usually receive more treatment therapies than in typical sober living environments.
Today, most private health insurance policies in the U.S. cover the costs of substance use disorder treatment.3 Your carrier may cover a portion or the entire cost of residential rehab depending on your policy.
While treatment coverage for drug use has increased since the Affordable Care Act (ACA) was passed, a majority of privately insured individuals still aren’t sure if their insurance plan covers addiction treatment.
Though understanding the details of your insurance plan can be difficult, it’s a good idea to make sure you’re taking advantage of all your insurance benefits. The best way to know if your plan covers substance use treatment is to call your provider and discuss your plan details with a customer service agent. A rehab center admissions specialist can also assist you with insurance coverage details.
Most rehab centers in the U.S. accept insurance in addition to offering multiple payment options.
Depending on your policy, your provider may help cover a majority of inpatient program costs.
Many treatment centers list accepted insurance providers on their websites. Even so, insurance for rehab is always on a case-by-case basis. It’s best to discuss whether your insurance policy covers program costs with someone from the admissions team and your insurance carrier.
You can also browse through our collection of luxury rehabs that accept insurance.
It depends. There’s a wide range of treatment plans for different types of substance use disorders, making it hard to pinpoint a singular, best insurance policy for addiction treatment.
Since the Affordable Care Act included substance use disorders4 and mental health services as an essential health benefit in 2014, a majority of private health insurance policies in the U.S. now cover substance use disorder treatment.
A good way to find an insurance policy for your situation is to start by speaking with a rehab admissions specialist–they can help you understand the type of treatment plan you may need. With a doctor-recommended treatment plan in mind, you should speak with customer service agents from different insurance companies to compare coverage policies and find one that best suits your needs.
Here are some key questions to ask an insurance company:
You don’t have to wait for your insurance plan to be active to receive addiction treatment. However, health insurance providers will not cover any portion of your medical expenses before your policy is active. That means you’ll likely have to pay out-of-pocket for any treatment received prior to your policy start date.
If you need to receive addiction treatment before your insurance policy is active, different financing options are available. Some rehabs offer financing options directly from their own funds or work with a 3rd-party lender to create affordable loan packages. An admissions advisor can give you more information on ways to pay for treatment before your policy start date.
Yes, any medical illness or injury you may have had before starting a new health insurance plan could be considered a pre-existing condition.
However, since the passage of the Affordable Care Act, insurers cannot deny coverage or charge people more for pre-existing conditions, including substance use disorders or mental health issues.
A majority of insurance providers do.
Since the Affordable Care Act was passed, most individual and small-group health insurance plans in the U.S. are required to cover mental health and addiction treatment services.
These plans must comply with laws in the Mental Health Parity and Addiction Equity Act (MHPAEA).5 This means coverage for mental health services cannot be more restrictive than coverage for medical and surgical services. If your employer-sponsored health insurance policy includes mental health and substance use disorder services (many plans today do) they are also subject to MHPAEA laws.
It’s always recommended to check directly with your insurance provider regarding your plan’s benefits and coverage levels.
Some, but not all, insurance plans include eating disorder treatment benefits.
If your insurance plan includes eating disorder benefits, it will typically cover the following feeding and eating disorders, as listed in the DSM-5:6
Many insurance companies have their own guidelines–commonly called “level of care guidelines” or “medical necessity guidelines”—which will impact your coverage for eating disorder treatment.
For example, in order to receive coverage for inpatient treatment or partial hospitalization programs, some insurance companies require that you meet their “medical necessity” requirements. These requirements are often determined by factors like your weight, treatment history, vital signs, and more.
To fully understand your plan’s benefits, it’s best to speak directly with a customer service agent from your insurance company about their coverage policy for eating disorders.
Different rehab programs can have vastly different costs. That’s because treatment for different mental health and substance use disorders involves factors such as level of care, length of the treatment program, services offered, and amenities, all of which play into treatment costs.
Inpatient rehab programs without insurance can range from less than $10,000 for more affordable options to premium, luxury addiction treatment centers that cost over $80,000. A majority of private rehabs in the U.S. are priced between $10,000 to $25,000.
If you don’t have insurance, or if don’t want to use your insurance coverage to pay for treatment, you have other payment options for rehab:
You have the right to appeal their decision.
If your health insurance company stops paying for your residential rehab treatment program, you should start by speaking directly with an insurance customer service representative. If you filed a claim and your carrier denied it, you have the right to appeal their decision through two formal channels: an internal appeal directly with your carrier or an external review conducted by an independent third party.
If your insurance stops paying for your inpatient treatment coverage, here are steps you can take to make your case:
Step 1. Speak directly with an insurance customer service representative. Ask them to help you understand why your care is not covered.
It’s possible that your insurance company processed your claim incorrectly. In these instances, it’s up to you to follow up with your provider to make sure there were no mistakes in processing your claim.
Step 2. If you filed a claim and your health insurance company denied it, your carrier is legally obligated to notify you in writing and explain why your claim was denied within 30 days of any medical services you’ve received. In urgent care cases, they must notify you within 72 hours.
Step 3. Appeal the decision. If your claim was denied by your health insurance company, you have the right to appeal their decision through two formal channels:
1. Internal appeal: Ask your insurance provider to conduct a full review of their decision. You need to file an appeal within 180 days (6 months) of notice that your claim was denied. If your case is urgent, you can ask your carrier to speed the process up. If they still deny your claim, or if you need your appeal processed faster, your other option is to file for an external review.
2. External review: You can take your appeal to an independent 3rd party for review. In this instance, your carrier doesn’t get the final say over whether to pay a claim.
Step 4. Work with your addiction treatment provider. If the tactics above didn’t work, there are still other ways to dispute or reduce your treatment program costs. You may speak with someone from your rehab center’s finance department to see if you can negotiate options, such as:
If your health insurance stops paying for your inpatient treatment, many rehab centers will work with you to sort out different financing solutions.
Disclaimer: This post is for general informational purposes only and should not be construed as legal advice from LuxuryRehabs.com, nor should it be substituted as legal counsel on any subject matter.
It’s possible that your policy already covers treatment for substance use disorder to a certain degree, but they may require you to choose a rehab center within their network.
If you’ve already spoken with your health insurance provider and your policy doesn’t cover addiction treatment, you can look for a new plan. Open enrollment for health insurance plans in the U.S.8 runs from November 1st until December 15th in most states, with coverage starting January 1st.
You can also work out financing solutions directly with your addiction treatment center or through other avenues. Rehab treatment payment options include:
Usually, you’ll have temporary insurance coverage for a limited time.
Under the Consolidated Omnibus Budget Reconciliation Act (COBRA),9 most group health insurance plans must temporarily continue coverage to employees who have been terminated for reasons other than gross misconduct. This continuation of coverage often extends from the date of the qualifying event for a limited period of 18 to 36 months. During that time frame, you’re entitled to the same coverage you received under your group health care plan before losing your job.
To be eligible for COBRA continuation coverage:
COBRA applies to most private-sector employers ( with a minimum of 20 employees), and state and local governments health plans.
If COBRA applies to your employer’s group health plan and you opt for continuation coverage, your employer may require you to pay the full cost of the coverage plus a 2 percent administrative charge.
You also have alternatives to COBRA continuation coverage. Under the Health Insurance Portability and Accountability Act (HIPAA),10 you have the right to special enrollment. This means you can enroll in other health insurance plans without waiting until the next open enrollment season (this is often between November and December each year in the U.S.). You must request special enrollment within 30 days of the loss of your job-based coverage. Following that, you must select a plan within 60 days of losing your job-based coverage.
Yes, you can. However, if you’re concerned about treatment program costs and need help choosing a health insurance policy to help cover expenses, a rehab center admissions specialist can provide guidance.
If you’re unable to receive insurance, you can work out financing solutions directly with your addiction treatment center or through other avenues. Rehab treatment payment options include:
Eating disorder treatment programs at luxury rehab centers in the U.S. often cost between $25,000 to $50,000 per month. A few eating disorder treatment programs in the U.S. cost less than $10,000 per month without insurance.
If you travel to a country with a lower cost of living for luxury rehab, such as India, you can find many eating disorder treatment programs that cost under $10,000 per month.
Several dual-diagnosis treatment programs at luxury rehabs around the world range from $10,000 to $50,000 per month without insurance.
In countries around Southeast Asia or South Africa, you can find plenty of dual-diagnosis treatment programs that cost around $15,000 per month without insurance.
Several alcohol addiction treatment programs at luxury rehab centers around the world are priced between $10,000 to $50,000 per month without insurance.
If you travel to a location with a lower cost of living, such as countries around Asia or South Africa, you can find plenty of alcohol addiction treatment programs that cost around $15,000 per month without insurance.
Medicare can help cover alcohol and substance abuse disorder treatment in both inpatient and outpatient settings if you meet certain requirements:
Medicare covers several types of addiction treatment programs:
Inpatient (residential rehab)
Once you pay your deductible and coinsurance costs,11 Medicare covers inpatient alcohol and drug rehab for up to 90 days per benefit period. A benefit period starts when you are admitted to an inpatient addiction treatment program and ends 60 days after you haven’t received any inpatient care.
These are the coinsurance costs you’ll need to pay for each benefit period:
Medicare gives you 60 “lifetime reserve days,” which refers to additional days of inpatient hospital coverage during your lifetime. After you’ve used these 60 reserve days, any time you go over 90 days of inpatient treatment in a benefit period, you will need to cover all costs out-of-pocket for the days you went over during that period.
Partial Hospitalization Programs (PHPs)
Medicare may cover a portion of partial hospitalization program costs12 if your doctor certifies that you need at least 20 hours of therapeutic services per week. You will pay a percentage of the Medicare-approved amount for PHP and you’ll pay coinsurance for each day of PHP services you receive in an outpatient setting.
Medicare may help cover parts of Medicare-approved outpatient treatment services, as well as any medication prescribed as part of your treatment plan.
Yes, Medicare can help cover residential rehab programs if you meet certain requirements:
After you’ve paid your deductible and coinsurance costs,13 Medicare will help cover inpatient alcohol and drug rehab for up to 90 days per benefit period. A benefit period starts when you are admitted to an inpatient addiction treatment program and ends 60 days after you haven’t received any more inpatient care.
Since the passage of the Affordable Care Act, a majority of teen rehab centers in the U.S. accept health insurance. Depending on your policy, your carrier may cover a portion or the entire cost of residential rehab for adolescents. In the U.S., your children can stay under your health insurance plan until they are 26 years old.
Most adolescent rehabs in the U.S. accept health insurance. Many also offer payment options, including scholarships, to help finance treatment costs. Depending on your insurance plan, your provider may help cover a majority of inpatient program costs.
While many treatment centers list accepted insurance providers on their websites, insurance for adolescent rehab is always on a case-by-case basis. It’s best to discuss whether your insurance policy covers program costs with someone from the admissions team and your insurance carrier.
Most states offer employees the option to enroll in health insurance coverage for their spouses with substance use disorders.14
However, the extent of coverage, premium contributions, and who is eligible to enroll will vary from state to state.
No matter what state you’re in, it’s likely that you’ll need to opt in for insurance coverage for your spouses’ mental health or addiction treatment. This is usually not automatically covered. In certain states, your spouse’s mental health or addiction treatment will be covered under the conditionality of increased premiums.
It’s best to check directly with your state employer and health insurance company regarding your spouses’ mental health and addiction treatment coverage.
Costs vary depending on the type of program you’re in, level of care, and length of treatment.
According to a study on the costs, charges, and payments for inpatient psychiatric treatment in community hospitals15 in the U.S., the price for 8.4 days of depression treatment is $6,990 on average.
Depression treatment programs at inpatient luxury rehabs range from under $10,000 per month to upwards of $80,000 per week at single-client rehabs.
Yes, a majority of inpatient depression treatment costs are covered by insurance.
This has been the case ever since the passage of the Affordable Care Act,16 which listed mental health and substance use disorder services as essential health benefits.17
A customer service representative from your insurance company can offer greater details regarding inpatient depression treatment coverage. An admissions specialist at a treatment center can also help guide you through insurance coverage policies.
You can also browse private rehabs that accept insurance.
Meanwhile, the cost of an intensive outpatient program (IOP) ranges from $3,500 to over $10,000, depending on the length of the program and number of treatment sessions.
Outpatient program costs across Europe can range from under $10,000 per month in countries like Greece, to over $80,000 per week in countries like Switzerland, depending on factors that include levels of care and length of the treatment program.
The cost of luxury rehab in India ranges from $4,000 to $7,000 per month. On average, most private inpatient addiction treatment programs in India cost $5,000 per month.
The cost of luxury rehab in Australia ranges from $10,000 to upwards of $100,000 per month, depending on the level of care and therapies offered. On average, most inpatient addiction treatment programs in Australia cost $37,000 per month.
The cost of private rehab in Thailand ranges from $4,500 to $15,000 per month. On average, most luxury inpatient addiction treatment programs in Thailand cost $11,000 per month.
The cost of alcohol addiction treatment programs at a luxury inpatient rehab in Thailand ranges from $8,000 to $15,000 per month. On average, private alcohol addiction treatment programs in Thailand cost $10,000.
The average cost of luxury rehab in the Philippines is $3,000 to $5,000 for a 28-day program.
The cost of private rehab in the United Kingdom ranges from less than $10,000 to upwards of $75,000 per month, depending on the level of care and therapies offered. On average, most private inpatient addiction treatment programs in the UK cost between $10,000 to $25,000 per month.
The cost of luxury rehab in Ireland ranges from less than $17,000 to upwards of $174,000 per month, depending on the level of care and therapies offered.
The cost of private rehab in Spain ranges from less than $10,000 to over $50,000 per month, depending on the level of care and therapies offered. On average, private inpatient addiction treatment programs in Spain cost $28,000 per month.
The cost of luxury rehab in Switzerland is over $50,000 per month, on average. Switzerland is home to a number of world-famous luxury single-client rehabs, including Paracelsus Recovery and The Kusnacht Practice.
The cost of private rehab in Greece ranges from $17,000 to over $75,000 per month, depending on the level of care and therapies offered. On average, most luxury inpatient addiction treatment programs in Greece cost $17,000 per month.
The cost of luxury rehab in South Africa ranges from under $10,000 to over $50,000 per month, depending on the level of care and therapies offered. Because the cost of living in South Africa is lower than the cost of living in the U.S. and Europe, you can find luxury rehabs that cost under $5,000 per month.
The price of private rehab in Canada ranges from less than $10,000 to over $75,000 per month, depending on the level of care and therapies offered.
Most luxury rehabs in California cost between $25,000 to $50,000 per month, while ultra-exclusive programs can go for upwards of $80,000 a month. Almost all California rehabs offer options for financing your stay.
Most luxury rehabs in Florida cost between $25,000 to $50,000 per month. You can find addiction treatment centers in Florida priced under $10,000 and on the other side of the spectrum, some luxury treatment centers cost $85,000 per month.
Most luxury rehabs in Texas cost between $25,000 to $50,000 per month. You have options for rehabs that are under $10,000 per month, or ultra-exclusive programs that go for over $129,000 per month.
Many addiction treatment centers in Texas accept insurance to help cover program costs. If you don’t have private insurance, some centers accept Medicare or Medicaid.
Most luxury rehabs in Arizona cost between $25,000 to $50,000 per month, while ultra-exclusive programs can go for upwards of $75,000 a month.
Many addiction treatment centers in Arizona accept insurance to help cover program costs. If you don’t have private insurance, some centers accept Medicare or Medicaid.
Prices of luxury rehabs in Mexico can range from $10,000 to $50,000 per month. Because the cost of living in Mexico is lower than the cost of living in the U.S. and Europe, you can find luxury rehabs that cost $8,000 per month—some include unique therapies, such as ibogaine-assisted-treatment.
Leonhardt, Megan. “What You Need to Know about the Cost and Accessibility of Mental Health Care in America.” CNBC, 10 May 2021, https://www.cnbc.com/2021/05/10/cost-and-accessibility-of-mental-health-care-in-america.html.
Diep, F. (n.d.). The feds have proposed new guidelines for sober homes—And observers are deeply disappointed. Pacific Standard. Retrieved October 30, 2021, from https://psmag.com/social-justice/the-feds-have-proposed-new-guidelines-for-sober-homes-and-observers-are-deeply-disappointed
Mojtabai, R., Mauro, C., Wall, M. M., Barry, C. L., & Olfson, M. (2020). Private health insurance coverage of drug use disorder treatment: 2005–2018. PLOS ONE, 15(10), e0240298. https://doi.org/10.1371/journal.pone.0240298
Substance abuse and the affordable care act. (n.d.). The White House. Retrieved October 30, 2021, from https://obamawhitehouse.archives.gov/node/67255
The Mental Health Parity and Addiction Equity Act (MHPAEA) | CMS. https://www.cms.gov/CCIIO/Programs-and-Initiatives/Other-Insurance-Protections/mhpaea_factsheet. Accessed 22 June 2023.
Feeding and Eating Disorders. (2013). American Psychiatric Association. https://www.appi.org/
Abraham, A. J., Andrews, C. M., Grogan, C. M., D’Aunno, T., Humphreys, K. N., Pollack, H. A., & Friedmann, P. D. (2017). The affordable care act is a transformation of substance use disorder treatment. American Journal of Public Health, 107(1), 31–32. https://doi.org/10.2105/AJPH.2016.303558
Get 2021 health coverage. Health Insurance Marketplace®. (n.d.). HealthCare.Gov. Retrieved October 30, 2021, from https://www.healthcare.gov/
AN EMPLOYEE’S GUIDE TO HEALTH BENEFITS UNDER COBRA. (n.d.). U.S. Department of Labor, Employee Benefits Security Administration (EBSA). https://www.dol.gov/sites/dolgov/files/legacy-files/ebsa/about-ebsa/our-activities/resource-center/publications/an-employees-guide-to-health-benefits-under-cobra.pdf
FAQs on HIPAA Portability and Nondiscrimination Requirements for Workers. (n.d.). U.S. Department of Labor Employee Benefits Security Administration. https://www.dol.gov/sites/dolgov/files/ebsa/about-ebsa/our-activities/resource-center/faqs/hipaa-consumer.pdf
Costs | Medicare. https://www.medicare.gov/basics/costs/medicare-costs. Accessed 22 June 2023.
Partial Hospitalization Coverage. https://www.medicare.gov/coverage/mental-health-care-partial-hospitalization. Accessed 22 June 2023.
Costs | Medicare. https://www.medicare.gov/basics/costs/medicare-costs. Accessed 22 June 2023.
Compliance Assistance Guide Health Benefits Coverage Under Federal Law. (n.d.). Employee Benefits Security Administration U.S. Department of Labor. https://www.dol.gov/sites/dolgov/files/ebsa/about-ebsa/our-activities/resource-center/publications/compliance-assistance-guide.pdf
Stensland, M., Watson, P. R., & Grazier, K. L. (2012). An examination of costs, charges, and payments for inpatient psychiatric treatment in community hospitals. Psychiatric Services (Washington, D.C.), 63(7), 666–671. https://doi.org/10.1176/appi.ps.201100402
Substance abuse and the affordable care act. (n.d.). The White House. Retrieved October 31, 2021, from https://obamawhitehouse.archives.gov/node/67255
Essential health benefits—Healthcare. Gov glossary. (n.d.). HealthCare.Gov. Retrieved October 31, 2021, from https://www.healthcare.gov/glossary/essential-health-benefits/
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Figuring out how you’ll pay for rehab might seem like a challenge. Finances can be a burden or even a barrier to addiction treatment. But there are many ways to afford the care you need, from health insurance to loans. Learning more about your options can empower you to take the next step on your … Continue reading “How to Pay for Drug and Alcohol Rehab: A Comprehensive Guide”