How to Pay for Rehab

There are several barriers to attending treatment, and the cost is a major one. While addiction treatment can save you money in the long run, as well as significantly improve your quality of life, it can be expensive. At Footprints to Recovery, our goal is simple. We want to make treatment as available and affordable to you as possible.

Different Ways to Pay for Rehab

There are many ways to pay for and receive help for treatment payment. Our staff will work diligently with you to help you understand all of your possible options. Some of these may include:

  • Insurance
  • Medicare and Medicaid
  • Loans
  • Private Financing
  • Sliding scale options
  • Grants and scholarships
  • Crowdfunding

There are also public addiction treatment programs like non-profits. These provide free or low-cost services if you just can’t afford treatment or don’t have insurance to offset some of the costs.

Using Insurance to Pay for Addiction Treatment

If you have health insurance, the Affordable Care Act (ACA) ensures that you have equal coverage for mental health and substance abuse treatment services as you would for medical and surgical procedures and services. This is called parity.

Every insurance provider and a specific plan is a little different in how they provide coverage, the level of coverage, and what services are going to be covered. Insurance coverage varies from state to state, provider to provider, and plan to plan. 

The best way to find out what amount will be covered is by letting our staff at Footprints to Recovery to contact your insurance provider. We will work with your representative to ensure you are notified of the maximum amount of coverage possible.

In-Network vs. Out-of-Network

Much of the time, your coverage will depend on whether or not the provider is considered in-network or out-of-network. In-network providers often have contracts with insurance providers to offer services for a discounted rate. 

This means that you may have more coverage and fewer out-of-pocket expenses if you use a provider that is within your network. Some insurance plans will also only offer coverage if you use a provider who is considered in-network. Any services you get from an out-of-network provider will not be covered, or if they are covered, it will be at a lower rate.

An HMO (health maintenance organization) plan will typically expect you to use providers that are within a specific network, while a PPO (preferred provider organization) will often allow more flexibility to use the provider of your choice. However, you will typically pay more if you use a provider that is out-of-network than one who is in-network.

Plans and Level of Coverage

There are many different types of plans to choose from. The plan type will dictate your level of coverage, what services may or may not be covered, and the rate of coverage.

In general, most insurance providers offer coverage through a set of “metal” tier plans like these:

  • Platinum
  • Gold
  • Silver
  • Bronze

Typically, higher-level plans cost more monthly, but they offer the best coverage. For example, a platinum plan may have more coverage than a bronze plan, but you will pay a higher monthly premium. Higher-level plans may provide more coverage for addiction treatment services than lower-level plans as well.

Again, your specific plan details can be best explained by your insurance provider.

Out-of-Pocket Expenses and Deductibles

Even when you are using insurance to pay for addiction treatment services, you will still have some expenses that are not covered. These are called out-of-pocket expenses, and you’ll be responsible for paying these through your own finances. 

Most insurance plans will have deductibles that need to be met before coverage kicks in. You will need to spend a certain amount of money on your medical expenses — up to your deductible amount — before coverage kicks in.

For example, if you have a plan that has a $500 deductible and then offers coverage at 80 percent, you will have to pay for $500 worth of services out of your own money. You will also need to cover the remaining 20 percent of costs after the deductible is met.

Deductibles are usually annual, so after you reach the minimum amount, services are covered for the rest of the year. There is also usually an out-of-pocket annual maximum amount. Once you reach that amount, all services are covered.

Using Insurance for a Dependent

If you believe your child has fallen victim to substance abuse, there is a possibility that you can use your own insurance to cover their treatment at our facility. You have to add them to your insurance plan as a dependent. They can typically be covered on this plan until the age of 26.

Dependent coverage is offered through a family insurance plan, and services that are covered will vary from plan to plan and by the provider. We can help you determine if your insurance company will provide coverage for your immediate dependent.

Filing a Claim

To use insurance coverage to pay for addiction treatment, you will often need to pay for services upfront and then file a claim to get reimbursed. Most insurance providers have forms and the ability to do this online. You will need to make sure you get an itemized bill from the addiction treatment services provider and include it with your claim. 

Some insurance plans will ask that you first obtain a referral before receiving addiction treatment services. You may need to see your in-network primary care provider (PCP) first to get a referral.

It is also likely that you will need to obtain prior authorization before you get help. Prior authorization is to help your insurance provider decide whether treatment is medically necessary for you. Our medical professionals will evaluate your current state and send over the requirements for prior authorization if it is needed.

Loans for Drug Treatment

It may seem like a good idea to use a credit card to pay for our addiction treatment services and then pay back the debt later. Credit cards often have limits that may not be high enough to fund the cost of treatment, interest rates can be high, and it can be difficult to make monthly payments.

A private loan can help to save you money in the long run, and it can offer competitive interest rates with more flexible payment options. Lenders such as Prosper offer loans to cover health care expenses. A recovery-based health care lender, My Treatment Lender, also offers loans between $5,000 and $100,000 to cover addiction treatment and recovery services for qualified individuals.

  • Types of loan lenders: There are several different ways you can secure a loan to pay for addiction treatment. Private lenders, credit unions, and banks all offer loans that allow you to borrow money upfront to pay for services and then pay back the loan on a set schedule. You may also borrow money from a family member or friend as a loan.
  • Types of loans: You may take out a private unsecured loan if you have great credit and a low income-to-debt ratio. Another option is to use something as collateral, such as your car or home. A bank is more likely to offer you a home equity loan at a lower interest rate than a private unsecured loan, for example. A home equity loan uses your house as collateral to ensure that you can pay the funds back. Other lenders may let you use your car in a similar fashion.
  • Expected interest rates: Interest rates for private unsecured loans can range between 5 percent and 36 percent. Typically, loans to help pay for addiction treatment have competitive and low-interest rates. Home equity loans offered by a credit union or a bank generally have some of the lowest interest rates on the market.
  • The fine print: To qualify for a loan, you will typically need to show proof that you will be able to pay it back. Lenders will often ask for a lot of personal and financial information, including income, your current debt level, and any collateral you can offer. You will need to set up a payment plan you can adhere to over time.

Sliding Scale: How It Works

The American Psychological Association (APA) publishes that a sliding scale can be used as a payment option when you may not be able to cover the complete costs of treatment services. Sliding scale fees will take your income and financial situation into account. They will help reduce the cost of treatment if needed, based on what you make in a year.

This is how those with lower annual incomes are able to afford the same therapy and treatments that people of higher incomes do. The sliding scale is put into place, so everyone has a chance to receive equal levels of care. It also allows them to see specialists they might not normally be able to see otherwise.

Grants for Hardship Cases

If none of the other options appeal to you, there are always scholarships and grants that are available for hardship cases. Grants are better options for some because they don’t require you to pay back the amount that was given. This allows you to focus solely on your sobriety and is one less thing you will have to worry about once graduating from treatment.

These grants are provided through SAMHSA by the Substance Abuse Prevention and Treatment Block Grant. If you can’t afford treatment services and meet eligibility requirements, you may be able to qualify for a specialty grant. 

Selling Valuables

Another option a lot of people don’t consider is selling items of value that are already in their possession. Although we do not recommend liquidating everything, it is an important option to consider because there are many things in our daily lives we do not use on a regular basis. The money from selling these items can be used to fund treatments and allow you to avoid going into debt.

Some items you could consider selling if looking for extra money for treatment are:

  • Used motor vehicles like cars, trucks, motorcycles, RV’s
  • Expensive jewelry you no longer wear
  • Trading card collections
  • Valuable art pieces
  • Sports memorabilia
  • Cameras, phones, and laptops

Letting go of these items to pay for treatment will allow you to see the importance of life versus material things. In the end, it could be a way for you to change your mindset altogether.

Crowdfunding as an Option

Social media and campaigning is an effective, modern way to help pay for someone’s treatment costs. This is done through a process called crowdfunding. Crowdfunding is when people share posts on their Facebooks, Twitters, Instagrams, etc. in order to raise money for therapies and stay within our facilities at Footprints to Recovery.

You may be worried about what others will think if you post about getting financial help for you or your loved one’s addiction. The stigma of substance rehabilitation as a bad thing is fading, and it is becoming more accepted. With the use of crowdfunding, you may be able to raise enough money to cover the entirety of the cost of your treatments.

Finding Quality Care Within Your Budget

The cost can often be a barrier to getting effective treatment, and it is important to budget for quality care. Intensive treatment generally costs more, with our inpatient services being the most expensive. Outpatient treatment is often more affordable since it doesn’t require around-the-clock services. A step-down approach can be a great way to budget for care, as these programs allow you to move between levels of care as you progress through treatment.

The Substance Abuse and Mental Health Services Administration (SAMHSA) provides a Behavioral Health Treatment Services Locator tool to help you find addiction and recovery services near you. Trained professionals at an addiction treatment center can go over payment and financing options with you to help you get the most out of your care and figure out how to pay for it.

There Are So Many Options

A lack of insurance or financial difficulty does not mean that you can’t get help for addiction and ongoing support in recovery. As you can see, there are many options to help you offset the cost of rehab. Our staff is available at any time during the day to answer your questions about how to pay for treatment. We are more than willing to assess all of your possible options.

In order to start your recovery, it is important to evaluate what type of payment help you will need. Feel free to contact us at Footprints to Recovery for assistance. Our goal is to make paying for treatment as easy and painless as we can.

Trusted & Approved Addiction Treatment Centers

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The National Association of Addiction Treatment Providers (NAATP) is a nonprofit professional society designed to offer support to organizations across the continuum of care. Since 1978, it has extended resources, advocacy and thought leadership to its members.

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