
Short answer: Yes. Medicaid covers both mental health treatment and substance use disorder treatment, since both are considered essential health benefits. Liberty holds a Primary Mental Health facility designation, so Medicaid can cover both conditions together in one program instead of two separate ones.
- Medicaid covers both mental health and addiction treatment as essential health benefits
- Under the ACA, insurers cannot treat these benefits differently than medical or surgical care
- Many people need both treated together, not one after the other
- Liberty’s Primary Mental Health designation allows dual diagnosis treatment in one program
- Coverage still depends on medical necessity and your specific Medicaid plan
Can You Use Medicaid for Mental Health and Addiction Treatment?
Yes. Under the Affordable Care Act, both mental health treatment and substance use disorder treatment are considered essential health benefits, which means Medicaid is required to cover medically necessary care for both. This includes therapy, medication management, and different levels of addiction treatment like detox, residential, PHP, and IOP.
The federal Mental Health Parity and Addiction Equity Act reinforces this by requiring insurers, including Medicaid managed care plans, to cover mental health and substance use treatment at a level comparable to medical and surgical care.
Can You Use Medicaid for Addiction Treatment Specifically?

Yes, Utah Medicaid covers medically necessary detox, residential treatment, PHP, and IOP for substance use disorders, at a small number of in-network providers. Read our full breakdown in does Medicaid cover drug rehab in Utah for details on eligibility and coverage length.
What Is Dual Diagnosis and Why Does It Matter?
Dual diagnosis means treating a mental health condition, like depression, anxiety, or PTSD, at the same time as a substance use disorder, instead of treating one first and hoping the other resolves on its own. Addiction and mental health struggles are often connected, and treating only one usually leaves the door open for relapse.
Liberty holds a Primary Mental Health facility designation, which allows both conditions to be treated together under one roof, by the same clinical team, using one coordinated treatment plan.
How to Use Your Medicaid Benefits for Both
The best first step is confirming what your specific Medicaid plan covers, since managed care plans can vary in their networks and prior authorization requirements. It also helps to understand what your plan covers overall, whether your provider is in-network, and what out-of-pocket cost to expect if any care falls outside your coverage. If sober living is part of your plan after treatment, that is worth checking separately too.
Dealing with both a mental health condition and addiction?
Call Liberty Addiction Recovery Centers and our team will explain how dual diagnosis treatment works with your Medicaid plan. Or check your insurance online in minutes.
Frequently Asked Questions
Does Medicaid cover mental health treatment?
Yes. Mental health treatment is an essential health benefit under the Affordable Care Act, so Medicaid is required to cover medically necessary care.
Does Medicaid cover addiction and mental health treatment together?
Yes, when a provider is set up for it. Liberty’s Primary Mental Health facility designation allows both conditions to be treated together in one coordinated program.
What is dual diagnosis treatment?
Dual diagnosis treatment addresses a mental health condition and a substance use disorder at the same time, rather than treating one before the other.
Does my Medicaid plan cover Liberty for dual diagnosis treatment?
Liberty accepts Utah Medicaid as an in-network provider. Use our insurance verification tool to confirm your specific benefits, or call (801) 997-9183.
Why does treating both conditions together matter?
Untreated mental health conditions often drive relapse after addiction treatment. Treating both together gives you a more complete, coordinated path to lasting recovery.






