Medicaid is health insurance for low-income and needy adults and children, as well as the elderly and disabled. Medicaid is administered by the state government and financed through a combination of federal and state funds. Medicaid’s coverage for substance use disorder treatment was expanded under the Affordable Care Act (aka Obamacare) to mirror ACA requirements for private insurers. Therefore, Medicaid patients are entitled to rehab services deemed “medically necessary,” defined under the ACA as “Health care services or supplies needed to diagnose or treat an illness, injury, condition, disease or its symptoms and that meet accepted standards of medicine.”
Substance abuse treatment services commonly covered by Medicaid include: detoxification; inpatient, outpatient, and intensive outpatient services; relapse prevention and recovery maintenance programs; and necessary medications.