As insurance providers step up to pay for rehab, unscrupulous rehab providers in California have started to take advantage of the system, luring homeless people into rehabs and collecting hundreds of thousands of dollars in insurance fees.

As reported in the Daily Bulletin, broke and Homeless Heroin Addicts are worth hundreds of thousands of dollars each in the form of insurance payments, and many are bought, sold and exploited in an underworld rife with kickbacks, drug use and fraud that can end in death.

Addicts around the country are enticed to California with offers of free travel, rent, cigarettes and even manicures, often landing in centers that would not be allowed to open elsewhere. California’s hands-off approach to regulating the industry makes it easy for almost anyone to open a treatment center and charge insurance companies hundreds of thousands of dollars per client, without being required to show evidence that their treatment helps rather than harms.

In Sacramento, Sen. Pat Bates introduced legislation Wednesday to start addressing dangerous and deadly practices in California’s poorly-regulated addiction treatment industry.

“For more than 20 years, several bipartisan efforts to address the challenges surrounding the state’s drug rehab history have gone nowhere due to opposition from vested interests,” said Bates, R-Laguna Niguel.

“While I’m under no illusion that pursuing greater oversight will be any easier this year, doing nothing is not acceptable for constituents who have contacted me on this issue. The Southern California News Group’s thorough 2017 investigation into the industry makes it clear that reforms are needed.”

SCNG’s probe found that as opioid addiction has soared, unscrupulous rehab operators have rushed in to take advantage of mandatory mental health treatment coverage required by the Affordable Care Act. Broke and homeless heroin addicts are worth hundreds of thousands of dollars each in the form of insurance payments, and many are bought, sold and exploited in an underworld rife with kickbacks, drug use and fraud that can end in death.

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To read more about how California is starting to address Patient Brokering Scams, please visit the Daily Bulletin.