New Bill Would Add Medicare Rehab Coverage for Seniors

New Bill Would Add Medicare Rehab Coverage for Seniors

If cost is the reason someone has put off treatment, a bill now before Congress could change the math for older adults.

Lawmakers have reintroduced legislation that would expand Medicare rehab coverage to residential addiction treatment, a level of care Medicare does not currently pay for.

For seniors and families who have been quoted out-of-pocket prices, the change would remove a major barrier to care.

The American Society of Addiction Medicine welcomed the reintroduction of the Residential Recovery for Seniors Act (H.R. 9538) on July 6, 2026.

The bipartisan measure would create a Medicare Part A benefit for non-hospital residential programs that meet nationally recognized quality standards, and it would set up a payment system for them.

Who Would Benefit

Non-hospital residential addiction treatment is the only level of care Medicare does not cover today. That gap falls hardest on seniors, who make up most Medicare beneficiaries.

According to figures cited by ASAM, more than six million Medicare enrollees had a substance use disorder in 2023, yet fewer than one in four received treatment. About one in three people who went without care pointed to cost as a reason.

ASAM’s president said the bill would lower the cost barrier for seniors and, by tying payment to quality standards, help ensure the care people receive is evidence-based.

Untreated addiction can lead to more expensive hospital and emergency visits later, so widening coverage may reduce costs elsewhere in the system.

How Medicare and Medicaid Coverage Differ

Understanding which program pays for what can be confusing. Medicare is federal coverage mainly for people 65 and older and some younger people with disabilities.

Medicaid insurance is a joint federal-state program based largely on income, and in many states it already covers a broad range of addiction treatment.

If this bill passes, Medicare rehab coverage would move closer to what Medicaid already offers for residential care. Until then, it is worth checking exactly what your plan covers before assuming a program is out of reach.

Finding Affordable Treatment While the Bill Moves

You do not have to wait on legislation to find care you can afford. Ask any program whether it accepts Medicare, Medicaid, or sliding-scale payment, and whether scholarships or state-funded beds are available.

Rehabs.org lists thousands of affordable rehab centers across the country. Call 800-914-7089 (Info iconSponsored) to get your recovery started today.

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