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Paying for Rehab

Financing Options For Drug And Alcohol Rehab

Although getting treatment might seem costly, there are several options to help finance drug and alcohol rehabilitation.

The Different Ways To Finance Drug And Alcohol Rehab

When seeking treatment for a substance use disorder (SUD), overall cost is one of the biggest factors to consider. On average, outpatient programs cost between $3,000-$10,000 for 90 days of treatment while inpatient is typically $5,000-$20,000 for 30 days of residential treatment. Being overwhelmed by the price of rehab can hinder some from seeking treatment. In the United States only 10% of those with addictions receive treatment. Fortunately for those who are worried about affording treatment there are several ways to finance drug and alcohol rehabilitation.

Health Insurance

Rehabilitation for a SUD is covered, at least partially, by most insurance plans. Health insurance plans usually fall into 2 categories: private and government. Private, which accounts for more than 50% of the U.S., is purchased directly by the individual through privately run companies. Employer sponsored insurance is also considered private. Individuals should contact their provider to see if it can be used to finance drug and alcohol rehabilitation.

Health insurance can also be purchased through the government via the Health Insurance Marketplace. Most of the current government healthcare policies can be attributed to the Affordable Care Act (ACA) which was signed in 2010. Widespread health insurance coverage for drug and alcohol rehabilitation can be attributed to the ACA’s list of essential benefits which details the services that insurance plans must cover. This list puts mental health and substance use disorders on the same level as emergency services, pregnancy care, and chronic disease management. Private insurance is also expected to meet these benefits, or the minimum standards set by the ACA.

Medicaid and Medicare are other government funded healthcare options that can finance drug and alcohol rehabilitation. Currently there are just over 73.8 million people covered by Medicaid which is aimed at helping low-income adults, children, pregnant women, elderly adults, and people with disabilities. Medicare is specifically for people over the age of 65.

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Scholarships For Drug And Alcohol Rehabilitation  

Scholarships can also be of assistance to those seeking treatment. These opportunities, provided by 3rd party foundations or, more commonly, individual facilities, are determined on a case-by-case basis. Often individuals must contact facilities directly to see if they offer any scholarships which can make them a bit challenging to find.

There are some nonprofit organizations that can also contribute to financing drug and alcohol rehab through scholarships. 10,000 beds, a non-profit started in 2014, partners with treatment facilities who have unused spots (or beds) in their programs. Facilities can donate these open beds to the organization who will match them to a person in need. To apply for this program, those suffering from an addiction only need to fill out a 30-question form. 10,000 beds then reviews the application, considers the individual’s needs, and coordinates with the facility to see if it’s a match. In the organization’s 7 years, 10,000 beds has given nearly $20,000,000 in scholarships.

Government Grants  

Substance abuse costs the US about $600 billion annually. It has been proven that rehabilitation and other SUD treatment approaches can reduce this cost. With more treatment available to those suffering from an SUD, associated health and social expenses can lower even with the price of treatment. Additionally, rehabilitation is less expensive to the government than the cost of substance related incarcerations.

Because of this, the US government does have a few ways to make rehabilitation more affordable. Block grants are offered through The Substance Abuse And Mental Health Services Administration (SAMHSA). The Substance Abuse Prevention And Treatment Block Grant (SABG) can be applied for annually by anyone in the US territories who needs assistance. SABG’s goal is to fund treatment for those without health insurance while also preventing future substance use disorders. The target populations and service areas for this scholarship include pregnant women, women with dependent children, and intravenous drug users.

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Taking Out Credit And Loans To Finance Drug And Alcohol Rehab

Although the goal is to find a way to receive treatment in the most economical way, occasionally high risk decisions must be made. For example, credit cards can be used to finance drug and alcohol rehabilitation. It may seem like a preposterous idea to pay upfront with a credit card but treating an SUD can save money in the long run. Before committing to this kind of debt, one should establish with the facility the estimated total cost, when billing starts, whether medication is an extra fee, and if there are any other expenses involved. Not all but some facilities can work with individuals to develop a payment plan.

Personal loans are like using a credit card, just with lower interest rates. In 2019, the average credit card interest rate was 15.13% while the average personal loan rate was 10.63%. Once approved for a personal loan, individuals receive cash up front and will be expected to make specific monthly payments. If a loan is unsecured, collateral like a home or car, is not needed because a person’s eligibility is determined by their credit score.

A home equity loan requires individuals to put their home up as collateral to secure the loan. This type of loan is available when a person’s home now has higher value than the amount that amount that is still owed. While they are not approved as quickly, home equity loans have even lower interest rates and may be tax deductible. Taking out a home equity loan is risky because it’s possible that the value of a home may decline which can make the amount owed on the loan greater than the value of the home.

Faith Based Rehabilitation Alternatives

Faith based rehabilitation can be a more cost-effective alternative to standard rehabilitation. The Salvation Army uses faith in their completely free rehabilitation program. This 180-day program is a combination of work therapy, group and individual sessions, spiritual direction, and life skills development.

Alcoholics Anonymous (AA) also uses faith in their program. Through support groups, sponsor relationships, and the concept of a higher power, AA helps members abstain from alcohol. The key concepts of acceptance, surrender, and active involvement have been replicated to create similar groups for other substances.

Choosing How To Finance Drug And Alcohol Rehab

With so many financing options, drug and alcohol rehabilitation is feasible for those seeking treatment. It is important to evaluate current situations and consider all possible financing options.

For more information on these financing options, contact a treatment provider today.

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