Compare the Best Private Health Insurance Policies For Drug & Alcohol Rehab

Addiction is a significant issue for many Australians, requiring comprehensive treatment that goes beyond medical intervention. It often involves emotional, social, and ongoing mental health support. The financial burden of rehabilitation can be as overwhelming as the recovery process itself. Fortunately, it is possible to use private health insurance for drug rehabilitation which can help make treatment more accessible to more Australians.

How much does rehab cost in Australia?

Detox, often the first step in recovery, can also be costly without insurance. In-patient rehab, providing round-the-clock care, is another expensive treatment option. Having the right insurance can help lift some of these financial pressures off the shoulders of the addict, and their friends and family.

Some indicative costs are listed below:

• Outpatient detox: $1,000 - $1,500

• Inpatient rehab (includes detox):

  • 30-day programs: $6,000 - $20,000

  • 60- or 90-day programs: $12,000 - $60,000

• Outpatient rehab (3 months): $5,000 - $10,000

• Medications: e.g. methadone treatment for heroin addiction: approx. $4,700 per year

Source: The Addiction Centre

Addiction Statistics

Like most parts of the world, addiction remains a widespread issue in Australia, affecting people of all ages and backgrounds. The statistics vary by state, but both drug and alcohol abuse are significant public health concerns.

According to the Australian Institute of Health and Welfare (AIHW), “the majority of Australians aged 14 years and over consume alcohol” with the proportion of those drinking to excess hitting 16.8% as of 2019. Alcohol was responsible for nearly three in five drug-related hospitalisations in 2020–21, and most worryingly was a rise in alcohol-induced deaths in 2021, up 7.4% from the year prior to 1559.

The AIHW also records incidents of illicit drug use in Australia. According to their latest figures, around 9 million people (43%) aged 14 and over have illicitly used a drug at some point in their lifetime, with 3.4 million (16.4%) doing so in the previous 12 months. In 2021, 1,704 deaths were drug-induced, which was the fourth-consecutive yearly rise on this statistic. Aside from cannabis, the following drugs saw an increase usage over the same reported period:

• Cocaine

• Ecstasy

• Hallucinogens

• Inhalants

• Ketamine

The role of counselling in addiction treatment

Counselling can be the most important post-recovery treatment option for addiction. It can help people understand why and how their addiction/s manifested in the first place, as well as develop healthier coping strategies and build a strong support network for years to come. In Australia, the term ‘counselling’ can mean a few different things.

It might mean intensive individual counselling, group counselling sessions, or counselling for you and your family. Beyond helping to cover the costs associated with addiction rehabilitation, private health insurance cover is also available for mental health services such as counselling. These costs can vary, but below is a set of average costs you can expect:

Source: Lifeskills Australia - How much does counselling cost in Australia

What are the treatment options for addiction?

Effective addiction treatment often requires a multifaceted approach, tailored to the substance and severity of use. Some common treatments are listed in the tables below:

Medicare Coverage for Alcohol Addiction & Rehab

alcohol addiction treatment

Alcohol addiction and mental health problems can be closely linked. Alcohol addiction is not specifically covered by Medicare, but you may still be able to get support. The Better Access initiative can help.

You will need to see your GP, who will assess whether you are eligible for support. A treatment plan will be devised to outline the treatment that you will need. You can then be referred to a psychologist or psychiatrist for treatment. For the former, you can receive up to 10 therapy sessions per calendar year. A further 6 sessions may be available in "exceptional circumstances". It is up to your referrer to decide whether you qualify for this.

Although Medicare rebates are available, remember that out-of-pocket costs may still occur. This can happen if a psychologist charges above the Medicare schedule benefit. In this scenario, you must pay the gap between the two. The PBS can help with medicine costs. Some of the drugs used for withdrawal treatment are on the PBS. The main exception is Disulfiram. This is not a first choice treatment, and is not subsidised.

Rehab

Medicare can cover some aspects of rehab, such as in-patient care in a public hospital, out-patient care with a registered healthcare provider, and some medications. However, it may not cover all costs associated with drug and alcohol rehabilitation.

Additional Resources

There are a number of Australian resources for anyone looking for support with alcohol or other addiction/s. Here's a list of helpful resources: 

• ReachOut Australia

• Alcohol and Drug Information Service (ADIS)

• Narcotics Anonymous

• Alcoholics Anonymous

• Alcohol & Drug Information

• Counselling Online

• Alcohol & Drug Foundation (ADF)

• SMART Recovery

Frequently Asked Questions

Does private health insurance cover drug rehab? The more of your treatment you have in a hospital, the more costs can be borne by your private health cover (assuming this includes hospital cover). Many treatment clinics are in fact part of hospitals and this can help with the costs of recovery from addiction. How do you choose the right health cover for addiction? Selecting the right health insurance for addiction treatment requires careful consideration. Factors such as the price of your premium, the extent of your cover, and what out-of-pocket expenses you can expect, all need to be evaluated. Using a comparison tool can simplify this process and help you find a health insurance policy that best meets your needs, and those of your family.

Sources

• AIHW

• The Sydney Retreat

• The Ray Hader Clinic

• https://www.aihw.gov.au/reports/illicit-use-of-drugs/illicit-drug-use

• https://www.aihw.gov.au/reports/alcohol/alcohol-tobacco-other-drugs-australia/contents/drug-types/alcohol

• https://www.rehabmelbourne.com.au/FAQ/how-much-does-rehab-cost/ 

• https://smartrecoveryaustralia.com.au/ 

• https://www.health.nsw.gov.au/aod/Pages/wmrs-contact.aspx#bookmark2

Related Article

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Chris Stanley is the sales & operations manager of health insurance at Compare Club. With extensive experience and expertise, Chris is a trusted leader known for his deep understanding of health insurance markets, policies, and coverage options. As the sales & operations manager of health insurance, Chris leads a team of dedicated professionals committed to helping individuals and families make informed decisions about their health insurance needs.

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Chris's top health insurance tips

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  Australia’s public health system is world-class, but wait times for public hospitals can be long, inconvenient - and leave you living in constant pain while you wait.

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  An appropriate private health insurance policy can speed up your surgery, relieving your pain sooner.

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  Family health cover means your children are covered under the same policy as you.

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  Many health insurance policies come with a 12-month waiting period for pregnancy-related cover, so it’s a good idea to get a family policy organized well before starting your family. This means your child will be covered from birth until at least their early twenties (depending on which health fund you select).