State-Funded Drug Rehab Centers

Medically Reviewed by Johnelle Smith, M.D. on December 29, 2021

State-funded rehab programs offer counseling services, mental health support, addiction treatment, and other services for free or at a low cost. These free drug rehab centers are funded primarily through state and federal grants.

State-Funded Drug Rehab Centers

Drug and alcohol rehab programs can be very expensive, especially for people who need full-time inpatient or residential care.

In state-funded rehab facilities, the cost can be greatly reduced and may be free for some people.

Facilities offer low-cost and free rehab services by accepting government-funded health insurance, using federal and state grants, and/or receiving donations.

State Funding Through Government-Funded Health Insurance

Many drug and alcohol treatment centers across the United States accept government-funded health insurance programs.

These include:

  • Medicaid
  • Medicare
  • TRICARE military insurance

The most common government-funded health insurance provider that’s accepted at treatment centers is Medicaid.

Medicaid eligibility requirements vary based on the state you live in. States that have expanded Medicaid under the Affordable Care Act base eligibility terms on income alone.

Eligibility may also be based on being one or more of the following:

  • a U.S. citizen
  • pregnant
  • a parent or caretaker relative
  • a child
  • an adult between the ages of 18 and 64 earning a low income
  • 65 years of age or older
  • blind, disabled, or deaf

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Level Of Coverage

State-funded rehab centers that accept Medicaid may be able to provide free or low-cost treatment for some or all of their services.

You’ll first need to check your health plan to determine what services are covered under your plan.

Medicaid plans typically include multiple levels of inpatient and outpatient care for mental health and substance abuse.

Many states provide health care with managed care organizations (MCOs), which are private health insurance companies that work with the state to provide affordable health care.

Review your member handbook and MCO’s health plan policies to find out what services are covered for you and your family.


Some Medicaid plans in the U.S. require copayments, while others do not.

For those plans which do require copays, the fee is typically set based on your annual income and cannot exceed a certain amount per month or year.

Once you’ve reached that cap, you won’t have to cover any copays. This amount is usually a few hundred dollars.

Copays are often required for:

  • prescription medications, such as withdrawal management medications
  • inpatient services
  • outpatient services

However, you may be eligible for a health plan that doesn’t charge copayments, in which case you’ll receive free substance abuse treatment services.

Federal And State Grants For Substance Abuse Treatment

The primary source of state funding for these treatment programs is block grants and other grants awarded by the government.

The Substance Abuse and Mental Health Services Administration (SAMHSA) awards block funding for mental health and substance abuse treatment, education, and prevention.

The two primary block grants from SAMHSA are:

  • Community Mental Health Services Block Grant (MHBG): This program targets adults and children with mental illness, and is available in all 50 states.
  • Substance Use Prevention, Treatment, and Recovery Services Block Grant (SUBG): This program targets pregnant women, those who use intravenous drugs, and primary prevention services.

Each year, states granted this funding can disperse funds to different addiction treatment providers, who then create scholarships and other financial assistance programs for clients.

With these funds, treatment centers create scholarships and other financial assistance programs for clients.

Other Funding Sources For Treatment Centers

There are other state-specific grant and funding programs for substance use disorder (SUD) treatment programs.

Many non-profit organizations and state-run facilities utilize these funds. Some offer free treatment, while others can use funds to cover operation costs.

These rehabilitation centers also typically receive donations and provide other financial assistance programs for low-income individuals.

These options can help cover the costs of substance abuse treatment, such as inpatient rehab and outpatient programs.

Drug Treatment Programs Offered At State-Funded Treatment Centers

Throughout the U.S., you can find a full continuum of care for drug and alcohol addiction treatment backed by evidence-based services.

Keep in mind that if you have Medicaid or private insurance, you may have more options in finding treatment.

This is because options for free treatment at state-funded programs are limited.

Many state-funded rehab centers offer treatment options such as:

  • inpatient treatment
  • residential rehab treatment
  • detox programs
  • standard outpatient treatment (OP)
  • intensive outpatient rehab programs, such as partial hospitalization programs (PHP) and intensive outpatient programs (IOP)
  • dual diagnosis treatment
  • individualized treatment plans
  • individual and group counseling

Though services vary based on the state, your Medicaid plan can cover additional addiction treatment services.
Common substance abuse services include:

  • ambulatory detoxification
  • withdrawal management
  • partial hospitalization programs (PHP)
  • intensive outpatient programs (IOP)
  • medication-assisted treatment (MAT) using buprenorphine, methadone, Suboxone, and naltrexone

Getting Into A State-Funded Rehab Facility

State-funded treatment programs typically offer free and low-cost treatment, so the programs are in high demand.

You may need to remain on a waitlist before gaining entrance into the program, especially if this is an inpatient or residential treatment center.

There may also be fewer addiction rehab options in a state-funded program versus a private rehab center due to limited resources and addiction specialists on staff.

The drug abuse treatment program will likely require:

  • proof of income
  • Medicaid ID, if applicable

If approved and availability opens, you can begin your treatment program and discuss payment options for any remaining fees.

Other Rehab Payment Options

If you can’t get into a state-funded drug and alcohol rehab center, there are other options for low-cost treatment.

To lower or eliminate the cost of treatment, look into:

  • health loans
  • private health insurance coverage
  • self-payment
  • paying on a sliding scale
  • crowdfunding
  • financial assistance offered by the rehab center
  • Scholarships
  • free support groups

State-Funded Rehab FAQs

Deciding on an addiction recovery center can be overwhelming when there are many options available.

To help you narrow your search, we’ve answered some of the most commonly asked questions about state-funded addiction treatment.

Not all state-funded rehab centers take Medicaid, but many do. You may be able to use other public health insurance, such as Medicare or TRICARE.

Call the facility’s helpline if you are unable to determine which insurance plans it accepts from its website.

If you can’t get into the rehabilitation program immediately, you may remain on a waitlist for several weeks or months.

Some religious treatment programs receive state and federal funding for treatment if they’re considered non-profit.

However, many faith-based programs are usually funded primarily through private donations.

Some state-funded rehab programs offer opioid addiction counseling and medication, such as medication-assisted treatment (MAT) programs.

MAT programs may offer the following medications:

  • buprenorphine
  • naltrexone
  • methadone

Find A State-Funded Addiction Treatment Center

Affordable treatment for you or a loved one is possible. Find treatment facilities today by visiting

Select a state below to find state-funded treatment near you:

This page does not provide medical advice. See more

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Medically Reviewed by
Johnelle Smith, M.D. on December 29, 2021
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