Paying for rehab
Finding the funds to pay for your addiction treatment can be a daunting task. Many of the most effective inpatient programs can easily cost thousands of dollars. Fortunately, there are many options available, rather than paying the highest cost of all — that of drug addiction itself.
Borrow money from friends and relatives
Some people who struggle with drug addiction are fortunate to be very connected with friends and family. The people you know and trust the most should be the first people you turn to in your time of need — you could be pleasantly surprised by the charity of people in your life.
There are many websites out there that will help you with crowdfunding, which include GoFundMe, IndieGoGo, and Crowdrise. With these, you can create a campaign that you can share with everyone within your network to raise awareness and donations.
Draw from your personal savings
If your insurance can’t cover all the costs of addiction treatment, you should use as much from your personal savings as you possibly can. Other financial actions can result in dire consequences and high-interest rates.
Unfortunately, drawing money from one’s personal savings may not be an option, or it might not be enough to cover costs. According to a 2016 GOBankingRates survey, 69% of Americans have less than $1,000 in their savings account. Meanwhile, 35 % have no savings at all.
The costs incurred that are associated with drug use (criminal charges, payment for illicit drugs, etc.) could have drained your personal savings. But there are still many other options.
Take out a home equity loan
Instead of taking out a personal loan, if you or your spouse has a home, you can offer it as collateral and secure a home equity loan. These loans are relatively low risk, so interest rates associated with them are much better than any unsecured personal loans. You can also pay points — one point being equal to 1% of your overall line — to further cover the cost of interest.
Take out a personal loan
If you have a healthy credit score, consider taking out a loan from a bank or another lender. You will need to list your assets, income and expenses by showing bank statements and pay stubs.
Do not forget to read the fine print! You should choose a fixed payment loan instead of a variable loan, which is a good way to know how much you owe each month.
Consult a specialized loan company
There are many financial centers, including Prosper Healthcare Lending and My Treatment Lender, who explicitly give financial aid to those seeking drug rehab financing. Their loan packages are specially tailored to be affordable to those who need addiction treatment.
Instead of an upfront payment, you can extend your repayment over time, and the interest rate of loan companies is lower than those of credit cards and health cards.
Health care credit cards
Companies including Care Credit can also help you with drug addiction treatment financing. Some companies offer services specifically to those in need of covering medical expenses, or those with a poor credit history. You can receive up to $20,000 or more by participating in these programs.
Using credit to finance treatment
For those who cannot afford an upfront payment, you should investigate the possibility of funding your addiction treatment and rehab therapy with a line of credit. This way, you can immediately enter a treatment program and receive the help you need. You might qualify for 0% interest, and that would make using a credit line one of your best options.
However, the monthly payment for a credit line can be high. Be cautioned: You should only use a credit line if you can pay off the debt quickly.
The following is a list of private insurance companies with excellent drug addiction treatment coverage plans:
Blue Cross Blue Shield
TRICARE is a special insurance provider that caters specifically to members of the military.
TRICARE covers the following aspects of addiction treatment:
- Emergency inpatient services
- Medication–assisted treatment
- Mental health therapeutic services
- Partial hospitalization
- Residential treatment facility care
If you do not have private or military insurance, these are the types of insurance that might cover your care:
Medicaid is public insurance for low-income earners who are under 19 or older than 65, pregnant, a parent, or within a certain income bracket. The Affordable Care Act of 2010 requires all insurance providers to cover basic aspects of drug and alcohol recovery. Medicaid may not be accepted by every facility — to find a program that does search our directory.
Medicare is for those more than 65 years old or with disabilities, and is paid on a monthly basis based on your income — lower income earners pay less. Medicare can assist and cover up to 60 percent of inpatient treatment without a co-insurance payment; outpatient treatment, up to 80 percent of the costs; it can assist with pre-approved insurance, and it can cover prescription medications.
State-financed health insurance
Under the Affordable Care Act, addiction treatment is no longer considered a pre-existing condition for insurance purposes. The ACA uses an online platform called Health Insurance Marketplace to sell sponsored health insurance plans offering addiction treatment similar to private insurance plans.
Lack of money, or lack of information?
Often it is the case that people don’t have a lack of money, they have a lack of information about rehab payment options. You can talk to a counselor at a rehab center to find ways to come up with payment for the plan that can fit your finances and your needs.
There are methods of payment such as a sliding-scale fee that allows for patients to afford the treatment that would otherwise not have access to. Most insurance providers will cover at least a portion of the cost of addiction treatment, so contact your insurance provider as soon as you need treatment.