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Does Medicaid Cover Drug Rehab?

by Demarco Moore

July 19, 2023
a medicaid insurance form for drug rehab sits on top of a one hundred dollar bill

Yes, Medicaid covers drug rehab. If you or someone you care about is battling drugs or alcohol, Medicaid can be a lifeline and help pay for critical recovery services. However, coverage can vary by state and individual circumstances, which we’ll explain further in this blog post.

Key points in this blog:

  • Medicaid can help pay for drug rehab, but coverage may vary by state and eligibility.
  • You’ll need to meet requirements like income limits and family size to use Medicaid for rehab.
  • Medicaid often covers medical detox, inpatient and outpatient treatment, and addiction medicines.
  • Different rehab centers offer treatment services that Medicaid may cover.
  • If you have questions about rehab or Medicaid coverage, contacting an insurance or treatment provider is best.

What is Medicaid?

Medicaid is a joint federal and state program that partners with the Children’s Health Insurance Program (CHIP) to help millions of Americans with limited income or resources pay for healthcare costs. Medicaid provides a safety net for those who otherwise can’t pay for medical services like doctor visits, prescription drugs, or hospital stays. However, the exact benefits and eligibility can differ from state to state. With over 86 million Americans enrolled, Medicaid is crucial in helping people struggling with substance abuse.

When Can I Use Medicaid for Addiction Services?

To use Medicaid for addiction services like rehab, you must meet one of the eligibility requirements defined by your state. Examples include the following:


Beneficiaries must live in the state where they receive Medicaid. They must be U.S. citizens or qualified non-citizens, like lawful permanent residents.

Low-Income Families

Adults ages 19-64 with income at or below 133% of the federal poverty level (FPL), which was $14,580 for a single person in 2023, according to the Department of Health and Human Services (HHS). Children and teenagers up to age 19, with household income levels varying by age and state.

Earnings limits

Your eligibility for Medicaid, which can cover rehab costs, mostly depends on how much you make in a year. Here are the earning limits for 2023, according to the HHS:

Family Size Income Limit for Medicaid Eligibility (2023)
Single Adults $14,580
Family of 2 $19,720
Family of 3 $24,860
Family of 4 $30,000
Family of 5 $35,140
Family of 6 $40,280
Family of 7 $45,420
Family of 8 $50,560
Each Additional Family Member After 9 Add $5,140

Pregnant Women

Income levels for pregnant women vary but generally are higher than other groups.

Elderly Adults

Those over 65 may qualify for Medicaid if they meet income and disability requirements.

People with Disabilities

Includes certain physical, mental, or emotional conditions.

Remember, Medicaid eligibility may vary. What is the best way to know for sure? Contact your state’s Medicaid office or call 888-448-0302 today and talk to Landmark Recovery. A Patient Navigator can help guide you through the eligibility process.

What Rehab Services Does Medicaid Cover?

Medicaid can cover a broad range of rehab services for drug and alcohol addiction. However, exact coverage varies from state to state. Here are some commonly covered services:

  • Medical Detox: 24/7 medical assistance to safely withdraw from alcohol or drugs.
  • Inpatient Rehab: Intensive, structured residential treatment where you live at a facility while receiving substance abuse care.
  • Outpatient Rehab: Substance abuse treatment that allows you to live at home while receiving care.
  • Mental Health Services: Therapy sessions to address the root causes that may contribute to substance abuse and addiction.
  • Substance Abuse Therapy: Specialized therapy to address substance abuse.

Remember, the extent of coverage can differ by state. It’s important to verify the details of your state’s Medicaid program or contact a healthcare professional or social worker who can guide you through the process.

How to Use Medicaid For Drug Rehab

If using Medicaid for rehab seems intimidating, here’s a step-by-step guide to simplify things:

  1. Verify your eligibility.
  2. Understand your coverage.
  3. Find a rehab that accepts Medicaid.

Verify Your Eligibility for Medicaid

Your first task is to check if you’re eligible for Medicaid. This is mostly based on your income but can also include other factors like age, pregnancy status, or disability.

You can refer to the HHS guidelines to see if your income falls within the eligibility range. But remember, each state might have slightly different rules. So, the best way to confirm your status is by checking with your state’s Medicaid office.

Understand Your Coverage

Once you’re sure you qualify for Medicaid, it’s important to know what kind of rehab services it covers. This might include detoxification, outpatient services, inpatient services, and medication-assisted treatment (MAT).

Coverage can vary by state, but the Medicaid.gov website has a great tool for selecting your state and seeing your eligible benefits. Alternatively, you can talk to a healthcare professional or treatment provider to help you understand your coverage.

Find a Rehab Center That Accepts Medicaid

The next step is to find an alcohol and drug rehab center that accepts Medicaid. Some might not, or they might have limited spots for Medicaid patients. But many treatment centers, like Landmark Recovery, accept Medicaid.

Landmark is dedicated to helping those struggling with addiction, regardless of their insurance status. Complete our insurance verification form to confirm your eligibility and find a drug treatment program that’s perfect for you.

Medicaid Addiction Treatment at Landmark Recovery 

At Landmark Recovery, we offer a range of treatments for drug and alcohol addiction, all designed to aid your journey to sobriety. Each of our programs is crafted to meet your needs in each stage of addiction recovery:

  • Medical Detox: Our medically supervised detox program ensures safety and comfort during withdrawal, providing a solid foundation for recovery.
  • Residential Treatment: Live onsite and receive integrated, 24/7 care. Our residential program includes individual and group therapy, medication-assisted treatment (MAT), therapies, and skill-building classes.
  • Outpatient Rehab: If you need a flexible treatment option that allows you to maintain your daily responsibilities, our outpatient program could be the perfect fit. It includes counseling, addiction education, and relapse prevention training.
  • Aftercare: Long-term recovery is our ultimate goal for you. We provide access to an alumni network, regular events, and a Recovery Coaching Program. Plus, we can provide referrals to sober living homes for continued support.

Making Addiction Recovery Accessible for Medicaid Beneficiaries

Landmark Recovery is committed to serving all population segments, including those who use Medicaid. We even have rehab centers exclusively for Medicaid patients, including gender-specific facilities in Indiana. We aim to make recovery accessible and affordable for everyone, as we believe each person deserves the chance to reclaim their life from addiction.

Get Help Anytime

Our confidential admissions line is available 24/7 at 888-448-0302. Whether you have questions about your Medicaid coverage or want to learn more about our programs, we’re here to help you anytime or night. Visit our locations page to find a treatment center near you. Don’t let questions about insurance hold you back. Get the help you need today.

Explore More on Insurance and Drug Rehab

We’ve got you covered if you’re still on the fence or have more questions about insurance and addiction treatment:

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About the Author

Demarco Moore

Demarco Moore

A graduate of Middle Tennessee State University, Demarco Moore currently writes blogs about drug addiction treatment and recovery to help save lives at treatment provider Landmark Recovery. Before that, he cut his teeth as a sports writer at the Manchester Times, where his coverage and stories won Tennessee Press Association awards in 2016 and 2017.

He’s always had a knack for storytelling. Moore’s written content for junior golf tournaments and helped to amplify the “People Not Profits” message of credit unions. When he’s not writing, Moore loves to travel, laugh and put his mental health into the hands of the Tennessee Titans during football season.