Drug addiction affects every age, race and gender. For drug addicted people 65 years or older, Medicare is 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 receive services 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 creates the plan of treatment to be carried out. Also, Medicare will only cover a maximum of 190 days in a mental health hospital for the individual's entire lifetime.