Finding Insurance That Covers Rehab: A Comprehensive Guide
One of the biggest barriers to undergoing substance abuse rehab is finding the funds necessary. Out-of-pocket costs tend to be far too substantial for the average person to take on. As such, they have to rely on healthcare insurance coverage.
Unfortunately, the trouble with health insurance is that not all health insurance plans cover rehab costs. So, the question is: how do you find insurance that covers rehab?
We will help you understand the differences between insurance policy options and find the best insurance coverage for addiction recovery purposes. Let’s get started.
How Common Is Insurance That Covers Rehab?
Technically speaking, all health insurance policies in the United States cover rehab. This is because the Affordable Care Act (the ACA) and the Mental Health Parity and Addiction Equity Act (the MHPAEA) require them to.
That said, some insurance policies provide greater coverage than others. In other words, these policies vary greatly in terms of copays, deductibles, out-of-pocket maximums, and the like. Some even provide greater coverage for non-rehab health services than for rehab-related services.
What this means is that when choosing health insurance for rehab purposes, you need to do a good deal of research. You can’t just skim over the highlights of the plan. You have to read the fine print.
Where Can You Get Health Insurance?
You can get health insurance in several different places in the United States. These include the following:
From Your Employer
Many jobs (and full-time jobs, specifically) offer health insurance as a benefit. So, if you’re struggling to obtain a favorable health insurance plan, you could consider finding a new job.
That said, it’s important to note that the employer generally dictates the specifics of an employer-provided health insurance plan. As such, the insurance you receive from your employer may or may not provide favorable coverage for rehabilitation purposes.
Directly from an Insurer
If you aren’t getting insurance from an employer, or if the insurance offered by your employer is sub-par, you can instead opt to buy insurance directly from an insurer. Every health insurance company is bound to have several plans to choose from and could have one that suits your particular situation.
To find health insurance companies in your state, simply search Google for something similar to “health insurance companies near me.” This should return a list of websites you can browse through and contact as needed.
From the Healthcare Marketplace
Another option is to purchase a health insurance plan from the government’s Healthcare Marketplace. This is a great option for many, as it provides credits and rebates based on income and family size. Those with low income might even be able to obtain premium-free health insurance.
To be eligible for this insurance, you must submit information through Healthcare.gov. Follow the directions within that link, and if you’re eligible, you’ll be able to select from various plans.
In California, we have Covered California, the state’s health insurance marketplace established under the Affordable Care Act (ACA). Here, residents can compare and purchase health insurance plans. It offers plans from different private insurance companies, all of which are required to provide essential health benefits, including coverage for substance use disorders and mental health treatment.
Through Covered California, individuals and families can access financial assistance through subsidies to help lower the cost of premiums and out-of-pocket expenses, making health insurance more affordable. These subsidies are based on income and family size, ensuring that low-income individuals and families receive the support they need to afford comprehensive health coverage.
From the Government
If your income is low enough, you might be eligible for government-provided health insurance, specifically Medicaid.
Medicaid offers full coverage for essentially all rehabilitation services and costs nothing to those who use it. You can sign up for Medicaid by sending an application through their website.
Understanding PPO, HMO, and EPO Policies for Rehab Coverage
When it comes to selecting a health insurance plan that provides the best coverage for addiction treatment, understanding the differences between Preferred Provider Organization (PPO), Health Maintenance Organization (HMO), and Exclusive Provider Organization (EPO) policies is crucial. Each type of policy has its own set of advantages and limitations, and knowing these can help you make an informed decision.
Preferred Provider Organization (PPO) Plans
PPO plans offer the most flexibility among the three types of insurance policies. With a PPO plan, you can visit any healthcare provider, including specialists, without needing a referral from a primary care physician. This is particularly beneficial for addiction treatment, as it allows you to choose from a wide range of rehab facilities and addiction specialists.
PPO plans typically cover a larger percentage of costs if you use providers within their network, but they also provide partial coverage for out-of-network services. This can be advantageous if the best rehab facility for your needs is not within the network. However, PPO plans generally have higher premiums and out-of-pocket expenses, such as deductibles and copays.
Health Maintenance Organization (HMO) Plans
HMO plans are often more affordable but have more restrictions than PPO plans. With an HMO plan, you must choose a primary care physician (PCP) who manages your healthcare needs and provides referrals to specialists. All treatments and services must be obtained within the HMO network, except in emergencies.
For addiction treatment, this means you must use rehab facilities and providers that are part of the HMO network. While this can limit your options, it also ensures more coordinated care. HMO plans usually have lower premiums and out-of-pocket costs, making them cost-effective for individuals seeking addiction treatment. However, the requirement for referrals and network restrictions can be a drawback for those needing more specialized care.
Exclusive Provider Organization (EPO) Plans
EPO plans are a middle ground between PPO and HMO plans. Like PPO plans, EPO plans do not require you to get referrals to see specialists. However, similar to HMO plans, EPO plans require you to use providers and facilities within the network for coverage, except in emergencies.
EPO plans typically offer lower premiums and out-of-pocket costs than PPO plans while still providing the flexibility of direct access to specialists. For addiction treatment, this means you can access rehab facilities and addiction specialists within the EPO network without needing a referral. However, using out-of-network providers will result in no coverage, making it essential to ensure that the rehab facilities and specialists you need are within the EPO network.
Choosing the Right Plan for Addiction Treatment
When choosing between PPO, HMO, and EPO plans, consider your specific needs for addiction treatment. If having a wide range of options and flexibility to see specialists without referrals is important, a PPO plan might be the best choice. However, an HMO plan could be more suitable if lower costs and coordinated care within a network are your priorities. An EPO plan balances the two, providing flexibility within a defined network.
By understanding these differences, you can select a health insurance plan that best supports your journey to recovery, ensuring you receive the appropriate care without unnecessary financial burdens.
Questions to Ask Your Prospective Insurance Provider
If you’re in the process of finding suitable health insurance, there are several questions you’re going to want to ask. These include the following:
Will My Policy Cover Detox Programs?
Detox is generally the first component of drug rehabilitation. This involves residing in a rehab center for a set period of time while you stop the use of the substance you’re addicted to. It’s important to do this under professional supervision, as assistance is needed in the event that something goes wrong.
You want your insurance to cover the cost of detox programs, as they can be fairly expensive otherwise. So, make sure to ask your prospective insurer whether your policy will cover such programs.
Note that your selected policy might not cover the entire cost. However, it should cover enough to ensure you’re not financially hamstrung.
Will My Policy Cover Drug Addiction Treatment After Detox?
After you’ve gone through detox, it’s wise to remain under professional supervision while you build suitable coping mechanisms. Drug rehab centers can help you build these coping mechanisms through therapy sessions, medical checkups, and the administration of medication.
There are both inpatient and outpatient rehab programs available out there. You never know which one might work for you. This is why, before purchasing insurance, you need to ask your insurer whether your drug addiction rehab will be covered.
Again, your policy might not provide full coverage. However, it should provide enough coverage to keep you financially comfortable in the long run.
Will My Policy Cover the Cost of Addiction Medications?
Often, when a person has an addiction problem, they can struggle to stay off a drug, even after they’ve initially kicked it to the curb. Rehab teaches these individuals coping mechanisms to help them resist illicit substances. However, therapy alone doesn’t work for everyone.
See, some individuals need to take medications in order to drop their drug dependency for good. As you might expect, some of these medications can be expensive when paying out of pocket. This is why it’s important to have an insurance policy that covers them for you.
So, before choosing a specific policy, make sure to ask the insurer about the specifics of medication coverage. Again, you’ll want the policy to cover enough of the costs to leave you financially comfortable.
What Is the Premium and Copay?
Two of the most important factors to consider when choosing health insurance are premiums and copays. The premium refers to the policy’s monthly payment, and the copay refers to the amount that the policyholder has to pay to utilize health services.
For instance, you might have a premium amount of $200. You’ll need to pay this every month to keep your health insurance.
At the same time, you might have a 50% copay for each rehab visit. Or, you might have a copay of 25% for each medication purchase. In these cases, you, as the policyholder and patient, would have to pay 50% of the total cost and 25% of the total cost, respectively.
These will affect how much you pay for medical services overall. As such, you need to analyze them carefully when choosing the best insurance for your situation. Ask your prospective insurer about both figures before making a purchase.
What Is the Out-of-Pocket Maximum?
Another figure you need to know is the out-of-pocket maximum. This refers to the maximum amount of money you might have to pay throughout your insurance coverage period. You’ll only pay this much if you use enough medical services to justify such.
Out-of-pocket maximums can range anywhere from $0 to $8,000 and even beyond that. If you’re going to rehab, you’ll want to keep this figure as low as possible. Once you reach this figure, you won’t have to pay any more money out of your own pocket, even if the cost of the medical services rendered far surpasses it.
Make sure to inquire about out-of-pocket maximums prior to choosing a policy. This figure can have a huge effect on your future bank account.
Does the Policy Cover Costs at All Rehabilitation Centers?
Health insurance companies often don’t cover the costs of all hospital and wellness center charges. In many cases, they require their policyholders to go to specific facilities to receive insurance coverage. In other words, they require their policyholders to choose providers in their network.
As such, before you choose an insurance policy, you need to ask your prospective insurer whether the policy covers costs at all rehabilitation centers. At the very least, you need to ensure that it covers the costs at the rehabilitation center of your choice.
If it doesn’t cover the cost, and you end up going to that rehabilitation center, you’ll have to pay substantial amounts of money out of your own pocket. The only way to ensure you’re covered is to ask your insurance company and verify.
Understanding Different Types of Treatment
When it comes to addiction recovery, there are several types of treatment options available. These include:
Inpatient Programs
Inpatient programs require the individual to reside in the treatment facility for a set period of time. This allows for round-the-clock care and supervision, making it ideal for those with severe addictions.
Outpatient Programs
Outpatient care allows individuals to receive treatment while still living at home. This can include intensive outpatient programs (IOPs) where individuals attend treatment sessions multiple times a week.
Residential Care
Residential treatment is similar to inpatient care but often lasts longer. It provides a structured environment where individuals can focus on their recovery without the distractions of daily life.
Medication-Assisted Treatment (MAT)
MAT involves using medications, alongside counseling and behavioral therapies, to treat substance use disorders. It is particularly effective for opioid and alcohol addiction.
Comprehensive Coverage for Rehab Services
Understanding what your insurance covers is crucial for effective addiction treatment. Here are some key aspects to consider:
Mental Health and Substance Use Disorder Services
All health insurance plans must cover mental health and substance use disorder services as essential health benefits. This includes both inpatient and outpatient care, therapy sessions, and medication.
Medical Detox Programs
Medical detox programs are an essential first step in addiction treatment. They involve medical supervision during the withdrawal process to ensure safety and comfort.
Behavioral Therapies
Behavioral therapies such as Cognitive-Behavioral Therapy (CBT) and Dialectical Behavior Therapy (DBT) are commonly covered and are vital components of effective addiction treatment.
Family Counseling and Therapy
Addiction affects not just the individual but also their family. Many insurance plans cover family counseling and therapy to help families cope and support their loved ones in recovery.
Frequently Asked Questions (FAQs):
1. What are the different types of insurance plans available for rehab coverage?
Several types of insurance plans can cover rehab, including Health Maintenance Organization (HMO) plans, Preferred Provider Organization (PPO) plans, and plans available through the Health Insurance Marketplace. Each plan type has different levels of coverage, premiums, and copays.
2. How can I determine if my insurance covers a specific rehab facility?
You should contact your insurance provider directly and ask if the specific rehab facility is within their network of providers. You can also ask the rehab facility if they accept your insurance plan.
3. What is the difference between inpatient and outpatient rehab programs?
Inpatient rehab programs require the individual to live at the treatment facility for the duration of their treatment, providing 24/7 care. Outpatient programs allow the individual to live at home while attending treatment sessions regularly.
4. How do I choose the right insurance plan for addiction treatment?
When choosing an insurance plan, consider the types of treatments covered, out-of-pocket costs, premiums, and whether the plan covers your preferred rehab facilities. It’s also helpful to speak with a representative who can explain the plan’s details.
5. Can I use Medicaid or Medicare for addiction treatment?
Yes, Medicaid and Medicare can be used for addiction treatment. Medicaid offers comprehensive coverage for addiction services, while Medicare provides coverage under certain conditions. Eligibility and coverage details can be found on the respective websites.
Looking for an Addiction Recovery Rehab in Ventura, CA?
As you can see, there are several insurance options out there that will cover the costs of rehab. Do your due diligence, and you’ll be sure to come up with something to minimize your costs.
Are you looking to check yourself or a loved one into addiction recovery rehab? Are you looking for a rehab in Ventura County, CA? If so, Altitude Recovery Community has you covered.
We offer a variety of substance abuse programs, from detox to inpatient treatment to aftercare planning and more. Contact us now to discuss your rehabilitation needs!
