Insurance & cost

How to use your insurance for rehab: Step by step

Published May 1, 2025 · 7 min read · Updated April 2026

Reviewed for accuracy by licensed clinical professionals.

Step 1: Call your insurance

Call the number on your card and ask about substance abuse treatment benefits. Ask: what levels of care are covered, what is my deductible, what is my out-of-pocket maximum, and do I need pre-authorization.

Step 2: Insurance verification

Most treatment centers offer free insurance verification. They contact your insurance, determine benefits, and estimate your out-of-pocket costs. Do this before admission.

Step 3: Pre-authorization

Many plans require pre-authorization (prior approval) for residential and PHP. The treatment facility typically handles this. Admission before authorization can result in denied claims.

Step 4: If denied

You have the right to appeal. First-level appeal: request reconsideration with additional documentation. External review: an independent reviewer examines the denial. Many denials are overturned on appeal. The treatment center's utilization review team can help.

Authoritative sources

This article references guidelines from: SAMHSA · NIDA · ASAM

Frequently asked questions

Can I get free treatment?

Yes. State-funded programs, Salvation Army, Medicaid, and scholarship programs provide free or very low-cost treatment. Call SAMHSA at 1-800-662-4357.

What if I have no insurance?

Apply for Medicaid, contact state-funded programs, or ask facilities about sliding scale and scholarship options.

Does insurance cover residential rehab?

Most insurance covers residential treatment with pre-authorization. Call your insurance to verify benefits.

Disclaimer: Informational only. Not medical advice. SAMHSA: 1-800-662-4357.