Drug addiction affects every race, age and gender. For substance abusers that are 65 years or older, Medicare may be an option to pay for some if not all of their drug treatment. Medicare insurance may 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 treatment from a Medicare-participating facility or provider. The patient's doctor notes 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 total of 190 days in a psychiatric hospital for the individual's entire lifetime.