Substance abuse and addiction affects every age, race and gender. For drug addicted people 65 years or older, Medicare may be an option to pay for some if not all of their drug rehabilitation. Medicare insurance will cover the treatment of drug addiction or alcoholism in both outpatient and inpatient settings, as long as a few key points are addressed. The addict must obtain services from a Medicare-participating facility or provider. The drug addicted person's doctor states that the drug or alcohol treatment is medically necessary and that the patient's doctor provides a specific recommended treatment plan. Also, Medicare will only cover a maximum of 190 days in a psychiatric hospital for the individual's entire lifetime.