Learn about private health insurance for drug and alcohol rehab

We understand that for many people, funding drug or alcohol rehabilitation is a significant concern. Read on to discover more about how private health insurance can help with the costs.

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We are fortunate in Australia to be able to use a variety of public health care services like doctors and hospitals. Many of these can be accessed without charge, making us the envy of the world.

However, specialist medical services such as inpatient drug rehabilitation for drug or alcohol addiction are typically privately-run, often requiring out of pocket payments to meet the cost of using them.

Rehabilitation clinics and treatment facilities are considered one of the most affordable ways to get back on your feet. For $14,750 you can live in rehab for 28 days and receive comprehensive care that includes accommodation as well as psychological treatment and detox support.

This kind of fee is beyond the financial means of most individuals. However, private health cover can fund rehabilitation treatment fully or partially.

The Hader Clinic explains how addicts are not able to predict how much they are going to use once they start using or control their use.


The Hader Clinic works with most private health insurance funds. If you have a health insurance policy with any of the following health insurance providers or many others, the costs of your treatment may be covered.


The cost of drug and alcohol treatment can be claimed through your private health insurance provider if you have cover for inpatient hospital psychiatric services. For some people, this might not have been included, because it generally goes into top-tier or gold level coverage on its own — but make sure to ask before buying!

Psychiatric health insurance cover starts at around $200 per month for inpatient treatment. 

While waiting periods for commencing a claim can vary depending on the insurance company, some inpatient psychiatric treatment covers start at two months.

Drug and alcohol rehab insurance is a great way to get the help you need without having any out of pocket expenses. You can sign up for this type of plan, submit your application and wait two months before seeking treatment.

Some people believe that rehabilitation clinics are too expensive, but what’s the alternative?

Substance use disorder or drug and alcohol addiction wreak havoc on people’s physical and mental health. They must be fought against fiercely — the sooner the better. Professional care and, if necessary, medication-assisted treatment, are vital to ensure patient safety and recovery.

Frequently Asked Questions About Rehab Health Insurance

Does Medicare cover alcohol rehab?

There is no specific coverage for drug and alcohol addiction under Medicare, but you may still be able to get help. The Better Access initiative can provide some mental health support with ten sessions. To be eligible for this support, you will need to see your GP and they will assess your situation.

Is alcohol rehab covered by insurance?

Some private health insurance policies do not always cover alcohol addiction treatment. So before you choose a policy, make sure you compare different health funds so that you are aware of what is and is not covered. This way, you won't be surprised if you need to use your policy for alcohol addiction treatment and find out that it's not covered.

What is the best insurance for rehab?

There is no "best" insurance provider for rehab. Different insurance companies offer different policies, and it's important to compare health funds to find one that meets your individual needs. Some important factors to consider include whether the policy covers inpatient or outpatient treatment, whether it covers research-based therapies, and what kind of out of pocket costs you'll be responsible for.

Other factors such as upper limits on coverage and pre-existing condition exclusions can also be important considerations. Speak with a knowledgeable insurance agent or therapist to learn more about what might be best for you.

How much do alcohol and drug rehab cost?

The cost of a rehab treatment program depends on the particular physical, psychological and emotional needs of each patient.

Some rehab programs are more expensive than others because they offer more luxurious accommodations or more individualized care. However, most reputable rehab facilities will not leave patients with unmanageable bills.

Many people receive insurance benefits that cover a large portion of the cost of drug or alcohol rehab. Additionally, there are a number of government-funded programs available for those who cannot afford to pay for treatment privately.

Private organizations such as Alcoholics Anonymous also often provide financial assistance to those in need. Ultimately, the best way to find out how much rehab will cost is to contact a facility directly and ask for a breakdown of their rates.

Do you have to pay to go to rehab?

There are different types of rehab programs, and some may be offered at no cost to the participant. But generally speaking, most rehab programs do require participants to pay a fee. The reason for this is that rehab is a very costly endeavour, and the facilities need to charge participants in order to cover their costs.

The best rehabs are often those that are most expensive. This is because they offer the highest level of care and have the best success rates. So if you or a loved one are looking for the highest possible chance of overcoming addiction, it’ll likely involve incurring costs.

Does insurance pay for inpatient rehab?

Most insurance companies will cover inpatient rehab to some extent. However, coverage varies widely from one insurer to the next, so it's important to check with your provider to see what is covered under your specific plan.

Some common features of inpatient rehab that are often covered by insurance include detoxification, individual and group therapy, and educational classes. However, there may be some out-of-pocket costs depending on your particular plan, so it's always best to check with your provider in advance.

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