Does Medicaid Cover Residential Treatment in Colorado?

In short, yes. Health First Colorado (the state Medicaid plan) does cover residential treatment for addiction. Inpatient rehab is accessible and available when it's medically necessary to treat substance use disorders.

We accept Health First Colorado plans.

Understanding your Health First Colorado coverage for residential addiction treatment

Taking the first step when you're ready for addiction treatment is the hardest. Knowing you have insurance coverage can take a lot of pressure off your decision to move forward.

Yes. Health First Colorado provides coverage for medically necessary residential and inpatient services for both substance use disorders and mental health conditions. This means if you need a structured, supportive environment to focus on your recovery, Medicaid is there to help you access it.

It depends. Residential treatment does require prior authorization for coverage. Other services, like substance use assessments and therapy sessions, might need prior authorization. These services are typical in residential treatment centers.

Health First Colorado plans cover mental health and substance use disorder treatment with no co-pays and no limits. The treatment you need is available to you without financial burden—including residential treatment.

You can contact your Health First Colorado Regional Organization or primary care provider. If you're ready to start residential addiction treatment, you can also get in touch with us here at Sheridan Grove Recovery, and we can help you navigate your coverage.

What is residential treatment?

The term "residential treatment" can refer to different levels of care, but it has a more specific definition for Medicaid coverage. Under Health First Colorado, "residential services" means:

"The on-site service for individuals whose mental health and/or substance use issues and symptoms are severe enough to require a twenty-four (24)-hour per day structured program and oversight, but that do not require hospitalization."

This definition helps fit the American Society of Addiction Medicine's (ASAM) level of care. ASAM takes a strength-based approach that considers someone's needs and their personal strengths and supports when they're entering treatment. Residential services are at ASAM Level 3.5.

Who is eligible for Health First Colorado?

Before you can use Medicaid benefits, you need to be enrolled. Eligibility for Health First Colorado is generally based on your income and household size. You may qualify if you are:

  • An adult with a low income
  • A parent or caretaker of a child
  • Pregnant
  • A person with a disability
  • A child or teenager

Income limits can change year-to-year, so don’t assume you won’t qualify. Many people who are unable to work due to their addiction find they are eligible for coverage. Applying is the only way to know for sure.

What services are covered in residential treatment?

Residential treatment is a safe place to stay while getting sober. It's also a comprehensive program designed to heal your mind and body. When you use your Medicaid benefits for addiction treatment in Colorado, you can access evidence-based services that let you start your recovery journey on the right foot. We offer these services at Sheridan Grove Recovery in Aurora:

  • Individual and group therapy: Work one-on-one with a therapist to explore the root causes of your addiction and develop personal coping strategies. Group sessions connect you with a community of peers who understand what you’re going through.
  • Medication-assisted treatment (MAT): For opioid and alcohol use disorders, MAT combines FDA-approved medications (like buprenorphine or naltrexone) with counseling. MAT reduces cravings and withdrawal symptoms so you can engage more fully in therapy.
  • Medication management: If you are also dealing with a co-occurring mental health condition like depression or anxiety, a psychiatric provider can prescribe and manage any necessary medications.
  • Crisis stabilization: If you experience a mental or emotional crisis during treatment, our team can help you stabilize and regain your footing in a supportive environment.

How to access care and find a provider

Getting into addiction treatment when you need it can be overwhelming, but it's probably not as hard as you think. If you're ready to start, we can help you through the process. Get in touch with Sheridan Grove Recovery by contacting us online or calling 303.268.2987.

1. Apply for Health First Colorado

If you're not already enrolled, the first step is to apply. You can apply online through the Colorado PEAK website, by phone, by mail, or in person at your local county office. You will need documents like proof of identity and income.

2. Talk to your doctor or a treatment professional

With Health First Colorado, you're assigned a primary care provider, and you can talk to them about starting addiction treatment. You don't need a referral for substance use disorder treatment under Colorado Medicaid, but they can still point you in the right direction. Don't stress if you don't talk to a primary doctor regularly or don't want to talk to them about rehab. You can also contact an addiction treatment center directly.

3. Get a clinical assessment and authorization

To cover residential care, Medicaid requires that it be "medically necessary." This is determined through a clinical assessment. A healthcare professional at a treatment center will talk with you about your substance use history, your health, and your living situation. Based on this, they will recommend a level of care and work on getting a prior authorization if necessary.

4. Find a Medicaid-approved facility

Choose a treatment center that is in-network with Health First Colorado. Your Regional Organization can provide a list of approved providers in your area. You can also call treatment centers directly and ask if they accept Colorado Medicaid.

At Sheridan Grove Recovery, we proudly accept all Colorado Medicaid plans. Our team can verify your benefits for you, so you can confirm your coverage and know exactly what to expect.

Frequently asked questions

Health First Colorado makes residential treatment accessible with no co-pays and no limits on treatment. For most people on Colorado Medicaid, there are very few, if any, out-of-pocket costs for medically necessary services received in treatment. You generally will not have to pay for your therapy, medical care, or your stay at the center.

You may be eligible for transportation to rehab. Health First Colorado can cover transportation to and from your treatment facility. Most times, this is something the treatment center will coordinate. Talk with an admissions specialist when you're working on enrolling.

Medicaid is designed to cover clinical services. It may not cover things like the cost of room and board at a separate sober living home after you complete residential treatment. Your care team will help you plan for these needs.

Contact us about using Colorado Medicaid for residential treatment

We know how hard it is to ask for help. Our team is here to help you navigate the Health First Colorado system so you can focus on what truly matters: recovery.

Whether you're ready to begin treatment or just want to ask a few questions, our team is here for you 24/7. Your recovery journey starts with care you can count on. Get in touch with us online or by calling 303.268.2987 now.