How families can help pay for a loved one’s treatment

By Robby Patrick, President and Founder, The Blackburn Foundation. Published October 23, 2026. Updated October 29, 2026.

Families can help pay for a loved one’s addiction treatment by using health coverage first, including a parent’s plan for adult children under 26, then by planning for the full length of care and applying for a treatment scholarship to cover what insurance does not. At The Blackburn Foundation, a family member can apply for a scholarship for someone they love, anywhere in the United States.

What should we do first if a loved one cannot afford rehab?

Work through these steps in order. Each one can lower the cost before you reach the next.

1. Call a free helpline. In Los Angeles County, call the Substance Abuse Service Helpline at 1-844-804-7500 (24/7, TTY 711) for a free screening and referral. Anywhere in the United States, SAMHSA’s National Helpline, 1-800-662-4357, is free and open 24 hours a day.
2. Check Medi-Cal or Medicaid. If your loved one has Medi-Cal or Medicaid, or may be eligible for it, public treatment can be available at no cost. In Los Angeles County, see free and low-cost addiction treatment in Los Angeles County.
3. Check private insurance. Call the number on the back of the insurance card. Ask which levels of care are covered, which programs are in network, and what the deductible and copays will be.
4. Ask programs about cost. When you call a treatment program, ask whether it offers reduced fees, payment plans or help applying for insurance.
5. Apply for a scholarship. If a gap remains, apply for a Blackburn Foundation treatment scholarship for your loved one. The Foundation also offers sober living scholarships.
6. Plan the conversation. Talk with your loved one when they are sober and calm, and come with a plan, not just a worry. See how to help a loved one get into treatment.

Can my adult child use my health insurance for treatment?

Often, yes. The U.S. Department of Health and Human Services says that if a parent’s plan covers dependents, a young adult usually can be added to or stay on that plan until they turn 26. That holds even if they are married, a parent, not living with their parents, attending school, not financially dependent on their parents, or eligible for their own employer’s plan.

HealthCare.gov states that all Marketplace health plans cover mental health and substance use disorder services as essential health benefits. Coverage still varies by plan, so call the number on the insurance card and ask:

• Which levels of care are covered: detox, residential, partial hospitalization, intensive outpatient and outpatient?
• Which programs are in network, and is prior authorization needed?
• What will the deductible, copays, coinsurance and out-of-pocket maximum be?
• How is continued care approved, and how do we appeal if it is denied?

Why should a family plan for the full length of care?

Because recovery takes time. The National Institute on Drug Abuse reports that most people with an addiction need at least three months in treatment to significantly reduce or stop their drug use, and that medically assisted detox is only the first stage of treatment. A plan that pays for the first stay but not what follows can leave a gap just when care is working. See levels of care, explained.

Can a family apply for a scholarship for someone else?

Yes. The Blackburn Foundation’s treatment scholarships can be requested by a person for themselves, by a family member for someone they love, or by a professional for a client. Every scholarship is decided case by case, and scholarships are open to people across the United States. Depending on need, a scholarship can help pay for:

• Intervention
• Detox
• Residential treatment
• Intensive outpatient treatment
• Sober living and transitional housing
• Therapy and psychiatry
• Mentoring and spiritual counseling
• Aftercare

1. Apply or refer. Fill out the online application or call (888) 305-5422.
2. A conversation. Our team learns what is needed and what is already in place.
3. A plan. We look at the level of care that fits, and work with you and the treatment team to build it.

Submitting an application does not guarantee a scholarship.

Are treatment costs tax deductible?

Sometimes. The IRS says that if you itemize deductions on Schedule A, you may be able to deduct medical expenses you paid for yourself, your spouse and your dependents, to the extent they exceed 7.5% of your adjusted gross income. The IRS lists amounts paid for inpatient treatment at a center for alcohol or drug addiction as a medical expense. Whether this applies to your family depends on your situation, so ask a tax professional and see IRS Publication 502.

What if the insurance company says no?

You have the right to appeal. Read what to do when insurance stops paying for treatment. If your family lives in Los Angeles County, see free and low-cost addiction treatment in Los Angeles County.

What else can a family do?

Money is only part of it. Read how to help a loved one get into treatment for how to prepare, what to say, and what to do if the answer is no. Families need support too: SAMHSA’s National Helpline, 1-800-662-4357, is free, confidential and open 24 hours a day.

This guide is general information, not medical, legal or financial advice. Talk with a qualified professional about your situation. How we write and source our guides: Editorial Policy.

Sources

1. U.S. Department of Health and Human Services, Young adult coverage.
2. HealthCare.gov, Mental health and substance abuse coverage.
3. SAMHSA, Know what your insurance covers.
4. National Institute on Drug Abuse, Principles of Drug Addiction Treatment: A Research-Based Guide (Third Edition).
5. Internal Revenue Service, Topic no. 502, Medical and dental expenses.
6. SAMHSA, National Helpline, 1-800-662-4357.
7. 988 Suicide and Crisis Lifeline, 988lifeline.org.