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If I Pay For Drug Treatment With Insurance, Is Everything Still Confidential?

The cost of alcohol and drug rehab will seem daunting, but it is worth the investment. To guarantee you are getting your money’s worth for your addiction treatment, be sure to research all options available. Avoid missing any benefits just because there may appear too great an expense at first glance.

If you’re unsure about the coverage, your employer offers, please review their summary. It will likely include benefits for substance abuse and mental health services. In addition to other critical medical needs such as prescriptions drugs or around-the-clock care from doctors if needed.

Federal Laws and Regulations Governing Substance Abuse Confidentiality

Federal laws govern the confidentiality of an individual’s drug or alcohol treatment (42 U.S.C. § 290dd-2), and regulations at 42 C.F.R. Part 2 outline the limited circumstances under which they can disclose information about them without their consent. The federal regulation at 42 C.F.R. Part 2 pertains to substance abuse prevention, treatment, or education programs, and the government assists.

Information from records covered by 42 CFR Part 2 can be shared with the proper consent. Written consent must have all of these elements:

  • A description of what information will be disclosed
  • The names programs disclosing the information
  • The specific need for disclosing information
  • The name of who will receive the disclosed information
  • The name of the patient whose information will be disclosed
  • The date that the consent is signed
  • The patient’s right to revoke the consent in writing or any exceptions to the right to revoke
  • The patient signature of the patient or authorized person
  • The date on which consent to the use of any materials expires, if not previously revoked
  • The ability by the program to payment or enrollment on a patient’s agreeing to sign their consent

Understanding HIPPA and How Your Information May Be Used

If you want to know what your privacy will look like when entering treatment, it’s important to take a look at any policies beforehand. Drug rehabs and Alcoholics Anonymous meetings are often required by law, so there can be no surprises later in recovery. In the United States, your medical records are protected by a series of laws. They are:

  • The Health Insurance and Portability and Accountability Act of 1996 (HIPAA)
  • The Confidentiality of Alcohol and Drug Abuse Patient Records (42 C.F.R. Part 2)

The Health Insurance Portability and Accountability Act of 1996 (HIPAA) is a federal law that protects the identifying information from patients who have applied for treatment at any federally assisted program. In addition, the Confidentiality of Alcohol and Drug Abuse Patient Records regulation specifies that treatment programs do not share patient information that would identify someone directly or indirectly unless the person gives written consent.

In Part 2 of the Health Insurance Portability and Accountability Act or HIPAA, all information is protected. Someone could use that to identify a person. Patients have rights under this law, so they can also revoke consent orally if needed, which will allow programs in substance abuse treatment centers to honor any verbal revocation made by them at any time during their stay there as well.

Will Your Insurance Cover Drug Treatment?

Your employer’s medical insurance may provide benefits for substance use disorders and mental health services. If you’re not sure, please review the coverage summary provided by your provider to learn more about what is covered in detail. It will answer any questions that might still be on your mind.

Although there are various types of levels regarding healthcare services that an individual can access through their private Insurance Plan provider, some only cover limited expenses. In contrast, others offer complete support with no co-pay required upon diagnosis at all – thus leading people who need these treatments to feel discouraged about seeking help because they don’t know if the bill will ever come around again even though many resources exist individuals struggling might receive assistance regardless.


If you need help deciding if your insurance coverage will cover drug treatment or not, give us a call. Our team of experts is ready and waiting to answer any questions on your mind about confidentiality in the process. We know how confusing it can be to navigate all the options available for addiction recovery these days, so we’re here to help! What’s been one question you’ve had while looking into this? Let us know! Our staff is always happy to answer any inquiries. Call us at 844-903-2111.