Medicaid Drug Rehab: What’s Covered, What’s Not

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Medicaid is one of the most important resources for individuals seeking addiction treatment, offering coverage for various levels of care. However, many people are unsure what services are covered and what limitations exist under Medicaid drug rehab programs.

Understanding what Medicaid pays for and what out-of-pocket costs may apply can help individuals and families make informed decisions about treatment.

Does Medicaid Cover Drug Rehab?

Yes, Medicaid covers substance use disorder treatment as part of its essential health benefits. This means that individuals enrolled in Medicaid can access various levels of care, including detox, inpatient rehab, outpatient programs, and mental health support.

However, coverage varies by state, and some programs may require prior authorization or have specific provider networks that patients must use.

What’s Covered Under Medicaid for Drug Rehab?

Medicaid provides comprehensive coverage for addiction treatment, including:

Detoxification Services

For individuals experiencing withdrawal symptoms, Medicaid covers medically supervised detox, which provides:

  • 24/7 medical monitoring to ensure safety
  • Medications to ease withdrawal symptoms (such as Suboxone for opioid withdrawal)
  • Transition planning into ongoing treatment programs

 

Inpatient and Residential Rehab

Medicaid covers inpatient rehab programs for those who require round-the-clock support. This includes:

  • Medically monitored residential treatment
  • Behavioral therapy and counseling
  • Medication-assisted treatment (MAT) in residential settings

 

Outpatient Treatment

For individuals who do not need 24-hour care, Medicaid provides coverage for outpatient rehab, including:

  • Partial Hospitalization Programs (PHP) – Intensive treatment while living at home
  • Intensive Outpatient Programs (IOP) – Structured therapy a few times per week
  • Standard outpatient therapy – Regular counseling sessions for ongoing support

 

Medication-Assisted Treatment (MAT)

Medicaid covers FDA-approved medications to help individuals manage cravings and withdrawal symptoms, including:

  • Methadone and buprenorphine for opioid use disorder
  • Naltrexone (Vivitrol) to block the effects of opioids or alcohol
  • Acamprosate and disulfiram to reduce alcohol dependence

MAT is most effective when combined with behavioral therapy, which is also covered under Medicaid.

 

Behavioral Therapy and Mental Health Treatment

Since many individuals with addiction also struggle with co-occurring mental health disorders, Medicaid includes coverage for:

  • Cognitive Behavioral Therapy (CBT) and other evidence-based counseling
  • Dual diagnosis treatment for individuals with substance use and mental health conditions
  • Psychiatric care and medication management

By integrating addiction treatment with mental health support, Medicaid ensures that individuals receive comprehensive care for long-term recovery.

What Medicaid Does Not Cover for Drug Rehab

While Medicaid covers a wide range of treatment services, there are limitations to what it will pay for. Some common exclusions include:

Luxury or Private Rehab Facilities

Medicaid only covers state-approved treatment centers, which means that private, luxury, or high-end rehab facilities may not be included.

Out-of-Network Providers

Medicaid typically requires individuals to use approved providers within its network. Treatment at out-of-network rehab centers may not be covered unless prior authorization is obtained.

Certain Holistic or Alternative Treatments

Some rehab programs offer alternative therapies such as yoga, acupuncture, and equine therapy. While these treatments may be beneficial, Medicaid does not typically cover them unless they are part of an approved treatment plan.

Extended Residential Treatment Beyond State Limits

Most Medicaid programs have limits on the length of stay in inpatient rehab. While short-term and long-term programs are covered, individuals may need re-authorization for extended stays beyond state limits.

How to Use Medicaid for Drug Rehab

For individuals seeking Medicaid-covered addiction treatment, the process involves verifying coverage and finding an approved provider.

1. Check Medicaid Eligibility

To qualify for Medicaid, individuals must meet income and residency requirements in their state. Ohio residents can check eligibility through the Ohio Department of Medicaid website.

2. Find a Medicaid-Approved Rehab Facility

Not all treatment centers accept Medicaid. Individuals can use:

  • The SAMHSA treatment locator tool to find Medicaid-covered rehab centers
  • State-funded addiction treatment resources
  • Assistance from Ohio Community Health, which helps verify coverage

3. Obtain Prior Authorization if Needed

Some Medicaid services, such as residential treatment or medication-assisted treatment, may require prior approval. This involves:

  • Getting a referral from a healthcare provider
  • Submitting necessary documentation for approval
  • Working with a treatment center to complete the authorization process

4. Begin Treatment with Medicaid Assistance

Once approved, individuals can begin their Medicaid-covered treatment plan, which may include detox, therapy, medication management, and outpatient care.

How Ohio Community Health Helps Medicaid Patients

At Ohio Community Health, we believe that financial barriers should never prevent someone from receiving the treatment they need. We work with individuals to:

  • Verify Medicaid eligibility and coverage for addiction treatment
  • Find the right treatment program based on medical and financial needs
  • Assist with prior authorization and paperwork for Medicaid-covered services

By providing comprehensive, Medicaid-approved addiction treatment, we ensure that individuals receive the care they need at little to no cost.

Start Your Recovery Journey Today

Medicaid provides crucial access to drug rehab services, covering everything from detox and inpatient care to outpatient therapy and medication-assisted treatment. Understanding what’s covered and what’s not can help individuals take the next step toward affordable, life-saving addiction treatment.

If you or a loved one needs Medicaid-covered drug rehab in Ohio, contact Ohio Community Health Recovery Centers today. Our team can verify your coverage, explain your treatment options, and help you begin your recovery journey.

Ben Lemmon, LCDCIII

Reviewed on 02/18/2025

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an image of author Joe Gilmore

Joseph Gilmore

Joseph Gilmore has been working in the addiction industry for half a decade and has been writing about addiction and substance abuse treatment during that time. He has experience working for facilities all across the country. Connect with Joe on LinkedIn.
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Christopher Glover CDCA

My name is Christopher Glover, and I am from Cincinnati, Ohio. I am currently in school and working to grow in competence to better support our community. As a recovering individual I know the struggles that you or a loved one can go through and that there is help for anything you may be struggling with.

The hardest part is asking for help and we are here as a team to best support you and your decision to start your journey towards a better future. Connect with Chris on LinkedIn

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Amanda Kuchenberg PRS CDCA

I recently joined Ohio Community Health Recovery Centers as a Clinical Case Manager. I am originally from Wisconsin but settled in the Cincinnati area in my early 20s.  My career started in the fashion industry but quickly changed as I searched to find my drive and passion through helping others who struggle with addiction. 

As someone who is also in recovery, I wanted to provide hope, share lived experience, and support others on their journey.  I currently have my Peer Recovery Support Supervision Certification along with my CDCA and plan to continue my education with University of Cincinnati so I can continue to aid in the battle against substance addiction. Connect with Amanda on LinkedIn.

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Patrick McCamley LCDC III

 Patrick McCamley (Clinical Therapist) is a Cincinnati native who has worked in substance use disorder/co-occurring mental health disorder treatment since 2019. Patrick received his bachelors degree in psychology from University of Cincinnati in 2021 and received his LCDC III (Licensed Chemical Dependency Counselor) license from the Ohio Chemical Dependency Professionals Board in 2022. Patrick has worked in Clinical Operations, Clinical Case Management, and Clinical Therapy throughout his career.

Patrick has tremendous empathy and compassion for the recovery community, being in recovery himself since 2018. Patrick is uniquely qualified to be helpful because of the specific combination of his academic background and his own experience in recovery.

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Bill Zimmerman CDCA

Bill Zimmerman is a Greater Cincinnati Area native who has worked in substance use disorder/co-occurring mental health disorder treatment since 2018. Bill received his (Chemical Dependency Counselor Assistant) license from the Ohio Chemical Dependency Professionals Board in 2020.

Bill has worked in Clinical Operations in both support and supervision, and Program facilitating and 12 step recovery support during his career. Bill has a passion for the recovery community, having been in recovery himself since 1982. Connect with Bill on LinkedIn

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Taylor Lilley CDCA, PRS

Growing up in Louisiana with addiction running rampant on both sides of my family. A life away from drugs and alcohol seemed impossible for someone like me. I remember what it was like sitting across from someone thinking there is no way they could ever understand what I was going through.

Sharing my experience offers a credibility and a certain type of trust with clients that only someone who has walked down this road can illustrate. To immerse myself further into the field of addiction, I am currently studying at Cincinnati State for Human and Social Services.  I hope I never forget where I came from, if I can do it, so can you!

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Thomas Hunter LSW

Hello my name is Thomas Hunter. I was born and raised in Cincinnati, Ohio. I am a licensed social worker.In my scope of practice I have worked in the areas of mental health and recovery for thirty years. The clients I have worked with in my career have ranged in age from seven to seventy.

I strive each day to serve my purpose of helping those in need and I believe I do so by utilizing all of my experiences to accomplish my goal of supporting those who desire to establish their sobriety and maintain it in their recovery. Connect with Thomas on LinkedIn.

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Mary D.Porter,LICDC

 My name is Mary D. Porter. I received my Masters of Social Work in 2008 from The University of Cincinnati. I received My Licensed Independent Chemical Dependency Counselor Licensure in 2001. I retired from The Department of Veteran Affairs Medical Center on April 14, 2014. Currently, I am the Associate Clinical Director for The Ohio Community Health Recovery Centers in Cincinnati.. Due to the fourth wave of the Opioid Epidemic in 2019,  I decided to enter back into the workforce to assist the addicted population.

The overdoses were astounding and I wanted to help.  I consider myself  to be an advocate for the addicted population. My compassion, resilience, empathy, wisdom, knowledge, experience and  love I have for this forgotten population goes beyond words. I consider what I do for the addicted population as a calling versus a “career,” because I too was once an “addict and alcoholic.” Today I am 45.5 years alcohol and substance free.

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Ben Lemmon LCDC III

Hello, my name is Ben Lemmon, and I’m the Vice President and Clinical Director at Ohio Community Health Recovery Centers. I’ve been working in the addiction and mental health field since 2013 and decided to enter the field after overcoming my own challenges with addiction.

When I first meet a client, I always explain to them that the reason we are meeting is because they are not capable of obtaining or maintaining sobriety, and my goal is to create a person that can maintain sobriety. I believe a person’s personality is made up of their thoughts, feelings and actions and my job is to help clients identify the thoughts, feelings and actions that have them disconnected from recovery and provide them with the tools to live a healthy and happy life. Connect with Ben on LinkedIn