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Does Medicaid Cover Residential Treatment for Substance Use?

April 01, 20253 min read

Can You Use Medicaid for Residential Rehab in Kentucky?

One of the most frequently asked questions about addiction treatment is: “Does Medicaid cover residential rehab?” The answer is often yes—but the details matter. In Kentucky, Medicaid provides coverage for a range of substance use treatment services, including certain residential care options. Understanding what’s covered and how to access those benefits is key to getting the help you or a loved one needs.

At Reclaim Recovery Louisville, we not only provide Medicaid-friendly treatment options but also help guide clients through the process of securing coverage and beginning their recovery journey.

What Is Residential Treatment?

Residential treatment, also known as inpatient treatment, involves living at a treatment facility for a period of time while receiving intensive, structured care. This environment removes individuals from potentially harmful triggers and provides round-the-clock support, making it an ideal choice for those needing a stable, focused setting for recovery.

Services typically included in residential treatment programs:

  • Individual therapy and mental health counseling

  • Group therapy sessions and peer support

  • Education on addiction, relapse prevention, and life skills

  • Holistic therapies such as mindfulness, movement, and nutrition

  • Family support and reintegration planning

What Addiction Treatment Services Does Kentucky Medicaid Cover?

Kentucky Medicaid covers a wide range of behavioral health services, including those for individuals with substance use disorders. Depending on your eligibility and the treatment provider, Medicaid may cover:

  • Residential treatment services (short- or long-term care)

  • Outpatient and intensive outpatient (IOP) programs

  • Therapy and counseling sessions

  • Medication-assisted treatment (MAT)

  • Case management and peer support services

It’s important to know that not all treatment centers accept Medicaid, and coverage may vary depending on the facility’s accreditation and services offered. At Reclaim Recovery Louisville, we work closely with Kentucky Medicaid and ensure our clients receive high-quality, covered care.

Does Medicaid Pay for Residential Treatment in Kentucky?

Yes—Medicaid can and does cover residential treatment in Kentucky for eligible individuals. However, approval often depends on medical necessity and proper documentation. Factors that influence coverage include:

  • The severity of the substance use disorder

  • Whether outpatient services have been attempted

  • Co-occurring mental health conditions

  • The treatment provider’s approval to offer Medicaid-covered residential care

At Reclaim Recovery Louisville, we provide the assessments and documentation required to help clients qualify for Medicaid-covered services. Our team works with Medicaid case managers to ensure each individual receives the level of care they need.

How Reclaim Recovery Helps Clients with Medicaid

Navigating insurance can feel overwhelming—especially when you’re focused on getting help. That’s why our team at Reclaim Recovery provides dedicated support to:

  • Determine Medicaid eligibility

  • Assist with applications for Kentucky Medicaid benefits

  • Help uninsured individuals apply for coverage before beginning treatment

  • Explain treatment options covered under Medicaid

  • Coordinate approvals for residential services when medically necessary

We believe that finances should never stand in the way of recovery. Our Medicaid-friendly programs are designed to make treatment as accessible and affordable as possible.

What If You Don’t Currently Have Medicaid?

If you don’t have insurance or aren’t yet covered by Medicaid, Reclaim Recovery Louisville can still help. We offer:

  • Application assistance for Kentucky Medicaid

  • Payment plans for those who may not qualify

  • Resources to connect with state and local support agencies

Our goal is to remove as many barriers as possible so individuals can focus fully on recovery.

Get Medicaid-Covered Residential Rehab in Louisville Today

Kentucky Medicaid does cover many substance use treatment services, including residential programs for those who qualify. At Reclaim Recovery Louisville, we’re committed to helping you access these benefits and receive the care you deserve.

📞 Call us today to speak with our admissions team about Medicaid coverage and treatment options.
📍
Visit us at 2604 South Fourth Street, Louisville, KY 40208.

Let us help you navigate Medicaid and begin your path to lasting recovery.

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