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Grants and
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Edited by: Dan Wagener, M.A. Updated Jul 15, 2022

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Find out how public assistance for rehab can help

make attending treatment more affordable.

What you will learn:

Grant options for rehab

Financial assistance for rehab

Cost and payment options for addiction

treatment

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Government Funding for

Drug and Alcohol
Rehabilitation
Many people in the United States would benefit
from professional help for their substance
abuse issues. However, the perceived cost of
addiction rehab can keep some people from
seeking out the treatment they need. It is
completely normal to need help paying for drug
rehab and, luckily, there are a variety of
options that can help cover the cost of
treatment. Insurance coverage and grants for
rehab centers are just some of the options
people have if they are struggling with
substance abuse issues and need treatment.
Some forms of financial assistance for
substance abuse treatment include:

State-funded substance abuse programs

and state-funded detox addiction treatment
programs.
Substance Abuse and Mental Health
Services Administration (SAMHSA) grants.
Medicare and Medicaid.
U.S. Department of Veterans Affairs.
The Affordable Care Act (ACA).

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For some people struggling with addiction to

drugs or alcohol, the cost of treatment may
discourage them, or their friends or family,
from seeking help.

Many treatment programs—especially inpatient

programs—are simply cost-prohibitive for a
large number of people. As a result, many
people who may need help with substance
abuse issues and addiction put off treatment,
which means that those people may decide to
not get help at all. At American Addiction
Centers, we partner with many insurance
providers to cover many treatment costs.

To make sure that treatment is attainable when

it is needed, there are public assistance
options that can offer these people the
financial support they need to begin the
recovery process. These options range from
government grants to state-funded
rehabilitation centers.

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What’s the Cost of

Addiction Treatment?
The cost of treatment programs ranges widely,
based on factors that include:

Whether the person receives inpatient or

outpatient treatment.
How long the person stays in the program.
Whether the provider is a government-
(optional)
funded clinic,
Include hospital
images program,
of your or private
insurance card
treatment center.
Whether there is a dual diagnosis (co-
occurring mental health disorder) or other
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condition involved in treatment.
The level of luxury provided in a substance
abuse center setting (e.g., amenities such as
spa treatments, horseback riding, private
rooms).
Where the facility is located (highly desirable
settings
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significantly add to the cost).

These costs can range anywhere from a few

hundred dollars for minimal intervention to
more than the cost of a car for high-end, luxury
inpatient rehab centers. Unfortunately, some
people’s severity of addiction and related
issues might require more intensive levels of
treatment.

Even a few hundred dollars can be prohibitive

for some people—and that’s where public
funding can take up the slack and get
individuals the help they need when they’re
ready for it and most likely to benefit from it.

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to get help for benzodiazepine
addiction.

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treatment. Our team of top medical experts
specialize in dual diagnosis treatment and
are committed to ensuring that each
patient is treated as an individual. Call us
today, we're available 24/7.

Call (866) 796-3480

Why call us?

The Benefits of Funding

& Grants For Substance
Abuse Treatment
Programs

Grants for substance abuse treatment prove

highly effective not just for individuals, but for
society as a whole. Research has shown that
every dollar invested in a substance abuse
center saves $4 in healthcare costs and $7 in
law enforcement and criminal justice costs.
Substance abuse treatment costs an average
of $1,583 per person and is associated with a
cost offset of $11,487—a greater than 7:1
benefit-cost ratio.1

Further, a study in California found that

substance abuse treatment for 60 days or
more can save more than $8,200 in healthcare
and productivity costs. And a study in
Washington state found that offering a full
addiction treatment benefit led to per-patient
savings of $398 per month in Medicaid
spending.1

These kinds of numbers make it very attractive

for states and municipalities—and for the
nation as a whole—to invest in drug and alcohol
rehab programs.

Treatment saves government resources and

taxpayer money, and it results in more
effective recovery; therefore, there have been
a number of methods established to provide
public assistance for drug and alcohol
addiction prevention, treatment, and rehab.

Facilities that specialize in addiction

treatment

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facility location.

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Orange County, California

Las Vegas, Nevada

Dallas, Texas

Etta, Mississippi

Riverview, Florida

Hollywood, Florida

Lafayette, New Jersey

Worcester, Massachusetts

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State and Local

Government Assistance

According to research from the Pew Charitable

Trusts, the majority of U.S. spending on alcohol
and drug treatment—nearly a third of the total
U.S. cost—comes from state governments and
local municipalities.2

Some of this public assistance comes through

an individual state’s substance abuse agency;
in several states, this agency is included under
a larger municipal health or behavioral health
department. These agencies develop and
implement their state’s addiction prevention
and treatment programs, and manage the
state, federal, and other funds that are allotted
to substance abuse.2

However, these agencies do not account for

the majority of money spent by states and local
governments on substance abuse programs.2

Child protective services, corrections systems,

drug courts, and other smaller agencies are the
major users of state and local funding for drug
and alcohol treatment programs.2

What is State-Funded
Drug Rehab?
Through federal and state financing, states are
able to set up and provide free substance
abuse help through their own rehab centers.
There are various types of rehabilitation
options for substance abuse available for those
looking for state-funded drug rehab.  State
centers can provide both inpatient and
outpatient treatment, and they can offer
follow-up support services or refer people to
them.

These programs may not offer many amenities

or the most up-to-date treatment methods.
And while they may offer inpatient care, a large
portion of their care is detox or outpatient. In
2012, 61% of admissions at publicly funded
treatment centers were for outpatient services,
22% were for detox, and 17% were for
residential or inpatient care.2

Further, state-funded centers often have

specific requirements in order for an individual
to be accepted into the program. These vary
by state but may include:

Proof of residence in the funding state.

Demonstrated inability to afford other
treatment (based on low or no income, lack
of insurance, etc.)
Proof of citizenship or legal residence in the
U.S.
Information about the degree or level of
addiction and history.

In 2016, almost 1.7 million people age 12 and

older were admitted to publicly funded
rehab centers.

A challenge with these treatment centers is

that there can be a waiting list to get into them.
Often, certain people are given priority for
spaces, such as pregnant women or veterans.

But the waiting lists should not deter people

from seeking help at these programs. They
may not be as glamorous as the luxury rehab
centers you see on TV, but they still help
people get sober every day. Getting some form
of treatment is better than no help at all.

According to SAMHSA, in 2016, almost 1.7

million people age 12 and older were admitted
to publicly funded rehab centers. The top
substances people sought treatment for
included opiates (579,528), alcohol (552,990),
and marijuana (228,391).3

Government Substance
Abuse Programs
Assistance
Federal support for drug treatment centers and
other programs is also provided through a
number of means. The U.S. government
agency that offers much of this support is the
Substance Abuse and Mental Health Services
Administration. SAMHSA provides information,
services, and grants aimed at helping rehab
centers and substance abuse programs
provide much-needed services to those who
need them but can’t necessarily afford them.

Other public assistance from the federal

government includes programs such as
Medicare and Medicaid, Veterans Affairs (VA)
benefits, and provisions under the Affordable
Care Act (ACA). Most of these programs
require some level of eligibility based on
income, age, disability, or other social
indicators.

SAMHSA Grants
What are the SAMSHA grants? SAMHSA
grants are a noncompetitive, federal source of
funding for state drug and alcohol rehabilitation
programs. Known as block grants, and
described on the SAMHSA website, these
grants are mandated by Congress to help fund
substance abuse and mental health services.
Specifically, the Substance Abuse Prevention
and Treatment Block Grant program provides
funds and technical assistance to states.4

Some SAMHSA grants can provide care to

specific segments of the population, such as
the Services Grant Program for Residential
Treatment for Pregnant and Postpartum
Women.5  Other targeted populations include
IV drug users, people with tuberculosis, and
people at risk for HIV/AIDS.6 The funds may
also be used to cover treatment and support
services for people who don’t have insurance.4

Medicaid and
Medicare
Medicare Part A (hospital) and Part B
(medical) insurance programs, as well as
the Part D prescription plans, can
provide coverage for drug and alcohol
rehab treatment. These programs cover
both inpatient and outpatient programs
and medications used in the treatment
of substance use disorders (with the
exception of methadone). They also
cover partial hospitalization treatment,
which doesn’t require checking into a
hospital but provides some of the
services of inpatient treatment, such as
individual and group therapy, family
therapy, and medications. If an individual
is covered by Medicare, either by age
(you must be 65 or older) or because of
disability status, these options are
available.7,8

Medicaid coverage for substance use

disorders, on the other hand, depends
on the state. Many states have
expanded Medicaid through the
Affordable Care Act (ACA), which makes
it available to more families than
before.9

Medicaid provides support for low-

income families or individuals; eligibility
can vary by state and is based on
whether the individual is:10

Elderly.
Pregnant or a family with young
children.
Within a certain income level.
Disabled.

Based on the expansion of the ACA,

Medicaid insurance coverage is required
to include substance abuse treatment
and recovery services. A patient who is
eligible and covered by Medicaid in the
states that have implemented the ACA
Medicaid expansion is able to receive
these services as part of their
coverage.9

Check with your state or with

the Medicaid eligibility website to see if
you qualify for Medicaid.

1
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