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Yes. In most states, Medicaid covers addiction treatment when the services are medically necessary and provided by approved or licensed facilities.

The goal is to ensure that individuals struggling with substance use can receive evidence-based care that supports long-term recovery.

Coverage can include a full continuum of care—from initial assessments to ongoing aftercare—depending on your state’s Medicaid program and managed care network.

While exact benefits vary by state, Medicaid typically supports several levels of care and essential recovery services, such as:

1. Substance Use Assessments and Screenings

Most states cover behavioral health evaluations, diagnostic assessments, and referrals for treatment based on clinical need.

2. Detoxification (Detox)

Medically supervised detox is often the first step in recovery, helping patients withdraw safely from drugs or alcohol.

Medicaid may cover inpatient or outpatient detox services depending on the severity of the condition.

3. Inpatient and Residential Rehabilitation

For individuals who require structured, 24-hour treatment, Medicaid may cover inpatient or residential rehab programs when deemed medically necessary.

Length of stay and facility type vary by state, but many approved centers provide integrated therapy, education, and support.

4. Partial Hospitalization (PHP) and Intensive Outpatient Programs (IOP)

PHP and IOP services allow individuals to receive consistent, structured care without overnight stays.

These programs are often covered under Medicaid for patients who need continued treatment but have achieved some stability.

5. Outpatient Counseling and Therapy

Standard outpatient services—such as individual counseling, group therapy, or family sessions—are typically included in Medicaid behavioral health benefits.

These programs are critical for relapse prevention and long-term recovery support.

6. Medication-Assisted Treatment (MAT)

Medicaid covers FDA-approved medications used to treat opioid and alcohol use disorders, including methadone, buprenorphine, and naltrexone, as well as required medical supervision and counseling.

7. Dual Diagnosis or Co-Occurring Disorder Treatment

Many Medicaid programs also support integrated care for individuals facing both addiction and mental health conditions, such as depression, PTSD, or anxiety.

8. Aftercare and Recovery Support

Depending on your plan, Medicaid may cover ongoing therapy, relapse-prevention planning, and case management to help you sustain recovery after completing treatment.

Eligibility for Medicaid is primarily based on income and household size, though specific requirements differ by state.

In general, you may qualify if you are:

• An adult or family with limited income
• A child under 19 or a dependent of a Medicaid enrolled
• A pregnant or postpartum individual
• A person with a disability or chronic health condition
• A senior who qualifies for both Medicaid and Medicare

In states that expanded Medicaid under the Affordable Care Act, more adults without dependents are also eligible based on income alone.

To find out if you qualify, you can visit your state’s Medicaid website or HealthCare.gov.

Medicaid coverage is based on medical necessity, meaning your treatment must be recommended by a licensed clinician and appropriate for your diagnosis.

Other factors include:

• Whether the treatment provider is approved under your state’s Medicaid network
• The type of care required (inpatient, outpatient, detox, etc.)
• Documentation submitted by your healthcare provider
• Your state’s specific managed care organization (MCO) policies

Most programs require a clinical assessment or prior authorization before starting inpatient or residential treatment.

For most members, Medicaid significantly reduces or eliminates out-of-pocket expenses for addiction treatment. 

You may have no costs at all for approved services, though some states charge small copayments or coinsurance for certain treatments.

Your total cost depends on:

• State coverage limits
• The type and duration of treatment
• Whether your provider accepts Medicaid directly
• Any applicable managed care cost-sharing rules

Better Addiction Care can help you understand what to expect before entering treatment and find a facility that accepts your Medicaid plan.

Before beginning treatment, it’s important to confirm what your plan covers. You can:

1. Call the number on your Medicaid ID card to speak with your state’s benefits representative.
2. Ask specifically about substance use disorder (SUD) treatment benefits and the approved providers in your area.
3. Check your state Medicaid website for the list of participating treatment facilities and managed care plans.

Contact Better Addiction Care — our team can help you locate rehab centers that accept Medicaid, confirm their participation status, and connect you directly with an admissions coordinator.

While Medicaid provides broad addiction treatment coverage, it’s important to understand that:

• Each state determines which services are offered and how long treatment may last.
• Not all treatment facilities accept Medicaid.
• Some higher-end or luxury programs may not be covered.
• Prior authorization may be required for certain levels of care, especially inpatient treatment.

If your plan has coverage limits, Better Addiction Care can help you identify alternative programs that are approved under your state’s Medicaid system.