Medicare Part B (Medical Insurance) covers partial hospitalization. Partial hospitalization services are provided under a partial hospitalization program, furnished by a hospital to its outpatients or by a community mental health center.
To be eligible for partial hospitalization services, a doctor must certify that you would otherwise need inpatient treatment.
Your costs in Original Medicare
You pay a percentage of the Medicare-approved amount for each service you get from a doctor or certain other mental health qualified professional. You also pay a copayment for each day of partial hospitalization services provided in a hospital outpatient setting or community mental health center, and the Part B deductible applies.