Does Health Insurance Cover Outpatient Drug & Alcohol Rehab?

There are different types of outpatient treatment, and patients can “step up” or “step down” between levels of care depending on their circumstances and needs.³ Your healthcare provider, substance use counselor, or another treatment professional can help you determine what level of outpatient care is the best fit for your needs.

Types of outpatient care that may be covered by insurance include:

• Standard outpatient rehab.
• Intensive outpatient programs (IOPs).
• Partial hospitalization programs (PHPs).
• Aftercare services.

Intensive outpatient addiction treatment programs (IOPs) offer rehab services for a few hours a day, 2 to 5 days each month.³ This can make IOPs a good option for people who are unable to attend inpatient treatment due to work responsibilities at home, school, or work.³ An IOP covered by insurance can be a good fit both for people who have recently finished inpatient treatment and those who are getting started with rehab.³

Many people who are working on their recovery enter partial hospitalization rehab programs (PHPs) following the completion of an inpatient program.³ Typically, a PHP covered by insurance runs for 6–8 hours a day during the week.³ PHPs can be a good fit for people who need a high level of support but have completed or are unable to attend an inpatient treatment program.³

As you near the end of your inpatient or outpatient treatment process, your substance use counselor will typically discuss developing a rehab aftercare program to help you maintain your progress as you return to daily life. Aftercare programs vary but are designed to help monitor your symptoms, support your recovery progress, and provide help in case of relapse.⁴ Your insurance plan may fully or partially cover the cost of various aftercare services, which can include attending 12-step programs, individual therapy, regular check-ins with your doctor, and more.³

After completing inpatient or outpatient treatment, you may be interested in sober living. Your insurance company may cover your sober living care. Sober living environments offer a substance-free living arrangement. Typically, sober living houses are run by a manager or leader and require attendance at 12-step meetings. In a sober living arrangement, you may have access to a peer coach who has also been through the recovery process and can understand the challenges that come with maintaining recovery after inpatient or outpatient treatment.³

If you want to begin the process of recovery but are unsure about how you’ll pay for treatment, you’re not alone. In the past, many people struggled to afford substance use disorder (SUD) treatment due to poor insurance coverage. Thankfully, much has changed in recent years. The Mental Health Parity and Addiction Equity Act (MHPAEA) and the Affordable Care Act (ACA) require most health insurance companies to offer substance misuse and mental health care on par with other medical services.³

Learning about your health insurance coverage for addiction treatment is often the first step in beginning your recovery process. Likely, your health insurance will fully or partially cover the cost of your addiction treatment.

To learn more about your addiction coverage, you have several options, including:

• Contact your insurance company directly by calling the phone number on the back of your health insurance card. You’ll talk with a plan representative who can explain your coverage for SUD treatment.
• Visit your insurance company’s website to view your explanation of benefits (EOB) online.
• Contact American Addiction Centers (AAC) to speak with an admissions navigator at to verify your benefits and learn more about how you can use your health insurance coverage to pay for outpatient addiction treatment. Verifying your insurance only takes a few minutes, and your admissions navigator can answer any questions you have about starting treatment at an outpatient rehab facility.

If you’re beginning to learn more about outpatient treatment and how to begin the recovery process, you’re already on the path to becoming your healthiest self. At American Addiction Centers (AAC), we’re excited to talk with you and support you as you begin your rehab journey. Contact our team today at to learn more and verify your insurance. You can do this—and we can help. Call us now to get started.

1. Substance Abuse and Mental Health Services Administration. (2014). What is substance abuse treatment? 
2. HealthCare.gov. (n.d.). Mental health & substance abuse coverage.
3. U.S. Department of Health & Human Services. (2016). Facing addiction in America: The surgeon general’s report on alcohol, drugs, and health.
4. Substance Abuse and Mental Health Services Administration. (2020). Substance use disorder treatment for people with co-occurring disorders. Treatment Improvement Protocol (TIP) Series, No. 42. SAMHSA Publication No. PEP20-02-01-004. Rockville, MD: Substance Abuse and Mental Health Services Administration.