California Lawmakers Plan To Take Down Drug Rehab Scams

A number of lawmakers from California are taking necessary steps against drug rehab facilities in the state because of the reported corruption. There are many rehab facilities in the area including ecstasy drug rehab but not all of these institutions are honest with their operations. According to lawmakers, they want to change the way that insurance companies reimburse the costs incurred by treatment providers.

Southern California News Group conducted a major investigation which revealed that the drug rehab industry is fraught with problems. In order for a facility to operate, there are no strict requirements such as medical certification or a degree. There are facilities that are offering below average services. Some are even providing unnecessary treatments just to add to the bill they have to send out to insurance companies. At the end of the day, they get to earn more from the high reimbursements.

This scam is known as profit reaping or patient brokering. It begins with staff of the facility looking for patients to enroll to their program. Some goes as far as offering monetary reward just to sing up with the facility. The facility then processes the health plan of the patient as they hope to earn from the insurance company when they are reimbursed with the services they have allegedly rendered.

According to a lawyer in California, there are drug facilities that maintain their patients’ drug addiction just so they can continue providing services and earning from the reimbursements. As soon as the benefit of the patient is over, the facility lets them go and they no longer pay for the premium health plan they originally enrolled with.

Centers tend to favor commercial insurance companies because their reimbursement rates are higher compared to public health plans. Furthermore, public health plans will not agree to pay for the patient’s treatment with a private facility.

The Department of Health Care Services has already acknowledged the issue. Even those facilities such as ecstasy drug rehab that are making honest living are aware of these operations but they can’t do anything except to leave it to the authority.