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California bill targets fraud and abuse in addiction treatment

A California lawmaker is seeking to rein in addiction treatment centers and dialysis providers accused of profiteering off vulnerable patients by collecting millions of dollars in inflated medical claims.

By Chad Terhune, Kaiser Health News | Updated on March 30, 2018
Gavel with drugs There are widespread reports of patient brokers and unscrupulous treatment centers enrolling patients in private plans and entering phony information to make sure they are deemed eligible for assistance. (Photo: Shutterstock)

A California lawmaker is seeking to rein in addiction treatment centers and dialysis providers accused of profiteering off vulnerable patients by collecting millions of dollars in inflated medical claims.

Supporters of the proposed legislation, scheduled for a key Senate hearing next month, say some providers, industry middlemen and charities with ties to providers are signing patients up for health insurance and paying the premiums only to line their own pockets. They say these arrangements drive up insurance costs industry-wide.

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