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How can we pay for our teens treatment?

By Stephen C. Schultz

Having started my career in healthcare in 1985,  I have witnessed the implementation of managed care and the standard of preauthorization. I frequently have conversations with clinicians, educational consultants, school district administrators, and parents about the critical need for residential treatment services. One question that is always discussed—but often asked last—is: "How much does it cost?"


There is no doubt that privately funding treatment for your son or daughter can place an additional financial burden on your family, compounding the emotional stress of your teen's struggles. To help ease this concern, I have compiled a list of ideas and resources that parents have successfully used to fund treatment. While it often requires creativity and persistence, many families have been able to accomplish what initially seemed impossible. Most families use a combination of the options listed below. I hope you find this information helpful.

Potential Funding Options:

Treatment Lenders

There are finance companies that specialize in funding mental health and substance abuse treatment. One such lender that has worked with various treatment programs is Prosper Healthcare Lending. National and international treatment providers such as Discovery Ranch, RedCliff Ascent, Oxbow Academy, OASIS, and Discovery Ranch South have all been funded through Prosper Healthcare Lending.


Credit or Personal Loan

Speak with your financial institution about available options. You may have enough available credit on a credit card or qualify for a personal loan.

Home Equity Loan

If you own your home, you may be able to take out a home equity loan. Interest rates vary, but they are generally lower than those of personal loans or credit cards.

Donations

You might be surprised by who in your family or social circle would be willing to help. One father, a firefighter, spoke to his fire chief, who then sent a letter through a national firefighter association. Firefighters across the country donated to assist in funding his son's treatment. Consider reaching out to your community for support.

Borrowing from Loved Ones

Think about the people in your life who care deeply about your teen—grandparents, step-parents, aunts, uncles, siblings, and godparents, to name a few. Create a list of potential supporters and develop a tactful and sensitive approach. Their help could come as a gift or as a loan with structured repayment terms.

Church or Synagogue Assistance

Some families have successfully arranged financial support through their religious organizations. If you are an active member of a faith-based community, consider discussing your situation with church or synagogue leaders.

Use of College Funds

If your teen is engaging in illegal or physically risky behavior, investing college savings in treatment may be a necessary decision. Prioritizing their health and well-being now can ensure a brighter future.

Sale of Recreational or Personal Property

Consider selling valuable assets such as a boat, motorcycle, extra car, cabin, jewelry, stocks, bonds, or a timeshare to generate funds for treatment.

Health Insurance Coverage

With the requirements of the Affordable Care Act, more insurance companies now cover mental health and substance abuse treatment. There is even a new billing code for Outdoor Behavioral Healthcare (also known as Wilderness Treatment Programs). However, parents should be aware that while insurance carriers may cite benefits, the actual amount paid out, the number of covered days, co-payment amounts, and options for "in-network" treatment are often limited.

If parental choice in selecting a treatment program is important to you, combining insurance with other funding strategies may provide the most cost-effective and beneficial solution. Choosing an out-of-network provider allows greater involvement and personalization in your teen’s care. Reimbursement rates can range from 50% to as high as 80%, depending on the plan. This flexibility enables parents to select the most suitable treatment program rather than being restricted to "panel providers" that offer services at discounted rates with predetermined lengths of stay and limited outpatient visits.

If having a say in your teen’s treatment is important to you, then working with an out-of-network provider may be the best option.

By exploring these funding options and combining multiple strategies, families can often make treatment more accessible for their teen. If you have any questions, reach out to treatment providers who can help guide you through the process.


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