Federal Suit Alleges Fraud in California's Addiction Treatment Industry

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Addiction Treatment,Fraud,Kickbacks

A federal lawsuit accuses two Orange County rehabs and others of running fraudulent schemes in the substance use disorder treatment industry. The suit alleges that they prey on vulnerable individuals, often members of Native American tribes, using tactics like kickbacks to insurance agents and body brokers who recruit patients.

Alcoholics Anonymous uses sobriety coins representing the amount of time the member has remained sober. Within that span there are hundreds — if not thousands — of addiction treatment programs.filed in federal court Dec. 11 against two Orange County rehabs, South Coast Behavioral Health and Rad Life Recovery of Costa Mesa, as well as others.“This surprising migration is not a result of quality treatment.

Screenshots included in the lawsuit filed by Blue Cross Blue Shield of Oklahoma against South Coast Behavioral Health, Excellence Recovery, Everything in Excellence Recovery, Rad Life Recovery, Cari Passmore, Brett Pershall and Randall Eisworth coverage, Blue Cross Blue Shield of Oklahoma said in the suit that once insurance benefits are exhausted, providers “kick patients to the curb, leaving these vulnerable individuals to fend for themselves thousands of miles from their homes.

That treatment was not free, of course, but would be paid for with health insurance. Oklahoma insurance agent Eisworth obtained the policies, telling addicts to lie about about their annual income, employment status and residency so they’d be eligible for Blue Cross Blue Shield plans and government subsidies.

When benefits dried up, members were often evicted with little or no notice. After that, according to the suit, they “suddenly find themselves on the streets with no money to afford housing or the necessities of daily life, much less an expensive trip back home. Putting these already-vulnerable individuals in such desperate circumstances only heightens the chances for relapse.”

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