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American Family Insurance (AFI) Coverage for Drug and Alcohol Rehab

American Family Insurance (AFI) offers coverage for a range of healthcare services, including mental health and substance misuse treatment. If you are struggling with drug or alcohol addiction and seeking treatment, American Family Insurance may be able to help cover some or all of the cost of rehab. To learn more about your substance use disorder (SUD) treatment options, call .
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American Family Insurance (AFI) has been around since 1927. AFI offers all kinds of insurance, including health plans. They are available in 19 states, and their health insurance ranges from supplemental and short-term plans to individual and family plans for clients.

Does American Family Insurance Cover Addiction Treatment?

Private insurance plans with American Family Insurance will cover substance abuse treatment to varying degrees. The 2014 Affordable Care Act (ACA) placed strict rules on private insurance, guaranteeing that plans cover drug and alcohol misuse treatment to the same extent that they cover other medical issues.2  This means that if your AFI plan covers 60% of your medical expenses, it must also cover 60% of your addiction treatment costs.

The ACA requires that all health insurance plans cover behavioral health treatment (e.g., psychotherapy and counseling), mental health inpatient services, and substance use disorder (SUD) treatment.2 The ACA also improved access to SUD services by requiring private companies like AFI to cover substance abuse screening, for the most part. There’s a very good chance that your particular AFI plan covers addiction screening and assessment services, which will help you determine the extent of your drug and alcohol problem.

The amount of coverage you have can vary widely based on your state of residence, whether the facility is in- or out-of-network, the length of your stay, and your insurance plan level. The cost of drug and alcohol addiction treatment will vary from person to person and will also depend on the rehab center, the type of program attended, and specific services received. Regardless of what rehab facility you choose and what insurance policy you have, you will likely be responsible for paying some out-of-pocket costs.

American Addiction Centers (AAC) strives to provide you with the most updated information on each carrier’s addiction insurance coverage, but policy changes and errors do occur. Please check with your insurance carrier directly to confirm coverage levels.

What Are American Family Insurance’s Coverage Levels and Plans?

American Family Health Insurance has a number of health plans.3 These plans have different coverage levels for rehab services, and the price will fluctuate with the amount of coverage offered.

  • Group health insurance: If you are covered through your employer, you likely have their group health insurance. A group insurance plan may have a specific network of care providers, and you may not be able to get coverage outside that network. Some group health insurance options do allow you to access medical care outside the network. It depends on the type of plan, and you’ll want to talk to your human resources department or insurance agent for details.
  • Short-term health insurance: AFI also offers short-term health coverage if you are unemployed or waiting for new coverage to kick in. These short-term plans may have limited benefits and don’t necessarily comply with the Affordable Care Act when it comes to required rehab coverage. These types of plans are best for protecting yourself from emergencies while you wait for a group or individual plan to begin.

If you want to buy coverage directly from AFI, there are individual health plans available. This is your best option if you are self-employed or don’t have coverage from an employer. Individual American Family Insurance health insurance plans work the same as group coverage but may cost more.

American Family Insurance, Medicare, and Medicaid

American Family Insurance offers different types of health insurance, including Medicare supplemental insurance, short-term plans, group health insurance, and supplemental products.

If you are eligible for Medicare, you may be interested in the AFI Medicare supplement.4 These plans allow you to keep original Medicare but help with deductibles and coinsurance costs. This is a great option for those who are concerned about the coinsurance with Medicare and want to keep things more affordable during their addiction treatment.

Different Types of Substance Abuse Treatment Covered by American Family Insurance

With most AFI plans covering at least some of the costs of treatment for drug or alcohol addiction, the types of treatment can vary in intensity and frequency. Types of addiction treatment may include:5,6

Medical Detox

Medical detox helps you withdraw safely from drugs and alcohol. Under 24/7 medical supervision, staff will work closely with you—and may prescribe medications to help ensure that you withdraw safely and that your symptoms are addressed as needed. You can look for medical detox facilities near me to find out more.

Inpatient or Residential Treatment

With residential inpatient programs, you receive treatment and live at the facility. Inpatient treatment typically involves group and/or individual therapy. It is often recommended for individuals with co-occurring (dual diagnosis) mental health issues, limited outside support, home environments that don’t lend themselves to sobriety, and poor treatment outcomes in the past.

Partial Hospitalization Program (PHP)

These programs allow you to live at home throughout treatment and spend your days at the treatment facility. Partial hospitalization programs are sometimes referred to as day treatment.

Intensive Outpatient Program (IOP)

Intensive outpatient programs typically involve attending drug and alcohol treatment programs approximately 3 evenings a week. People in these programs can live at home and go to work during the day.

Outpatient Treatment

An outpatient facility lets you meet with doctors and therapists, and you can even attend group sessions and recovery meetings before heading back home at the end of the day. With a residential program, you get the chance to focus solely on your recovery without any daily tasks getting in your way or slowing down your progress.

When you decide to get treatment for a drug or alcohol addiction, you and your healthcare provider will determine what type of rehab treatment is best for you.

Drug and Alcohol Rehab Centers that Take Insurance, a subsidiary of American Addiction Centers, can help you or your loved one find a substance abuse treatment facility that will meet your requirements. You may be looking for a treatment center that is near you or one that is out of state. Some of our rehabilitation facilities that take insurance in various states include:

To find out if you have coverage, give us a call , or verify your insurance coverage instantly.

Do Addiction Treatment Centers Need to Be In-Network?

In most cases, you will need to seek treatment at a facility that is in-network with AFI to receive your full benefits. Even if you choose a rehab that is in-network, you may still be responsible for some of the treatment costs.

If you choose a facility that is out-of-network, you may be responsible for all the costs of your addiction treatment. You may be able to discuss financing options such as a payment plan or scholarships offered by the treatment facility.

What Should I Do if AFI Won't Cover the Total Cost of Drug and Alcohol Rehab?

The cost of an addiction treatment program will vary based on a number of factors:

  • Type of program.
  • Location.
  • Amenities.
  • Privacy.
  • Length of stay.

If your American Family Insurance policy does not cover all your rehab expenses, it’s important not to let that stop you from getting treatment for drug or alcohol addiction. You don’t have to use insurance when you decide to check into rehab. There are many other ways to finance your treatment and get the help you need. Some ways to pay for rehab include:

  • Payment plans: You pay off rehab in affordable installments.
  • Sliding scale: The rehab decreases your cost to something you can reasonably afford—typically based on your income level.
  • Grants or scholarships: The Substance Abuse and Mental Health Services Administration (SAMHSA), as well as individual rehabs, offer grants and scholarships to pay for people who can’t afford treatment.
  • Purchase affordable insurance on the Healthcare Marketplace.
  • Open a healthcare credit card or take out a specialized healthcare loan.
  • Use your savings or a credit card.

Make sure to do thorough research when looking for rehab so that you can find one that meets your financial needs.

Here are additional resources that provide more information about other ways to pay for rehab with or beyond what AFI covers:

We know that finding a rehab center is a confusing task, but we’re ready to help you navigate through the world of treatment centers. Call one of our admissions navigators at if you’re worried about a loved one or you’re ready to take action to begin the process toward recovery.

How to Verify the Coverage of Your American Family Insurance Plan

Before deciding on a rehab center, check your AFI policy benefits to determine which costs will be covered by your insurance plan and which will be out-of-pocket for you. You can call the phone number on your insurance card or log in to your account on AFI’s website to determine how much you may need to cover in terms of copays and any deductible that must be reached before coverage kicks in for the services you need.

American Addiction Centers can also verify your insurance coverage for you. Visit our insurance verification page, enter your information, and you will immediately be able to see if the center you are considering is in-network with AFI. Or, call to speak to one of our admissions navigators to have them check your benefits and help you understand what is covered.


  1. American Family Insurance. (n.d.). About Us.
  2. (2021). Mental Health and Substance Abuse Coverage.
  3. American Family. (2020). Health insurance coverage for individuals, families, and groups.
  4. American Family. (2020). Health FAQs.
  5. National Institute on Drug Abuse. (2018). Principles of Drug Addiction Treatment: A Research-Based Guide (Third Edition): Types of Treatment Programs.
  6. National Institute on Drug Abuse. (2014). Principles of Adolescent Substance Use Disorder Treatment: A Research-Based Guide: Treatment Settings.
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