Drug Rehabs Lure In Patients for Insurance Money—Then Leave Them on the Street
October 9, 2025

(Wall Street Journal) – Operators promise high-end treatment, help addicts sign up for insurance then pile on charges for little in return, say former patients and insurers
The rehabs are often in locations that people might be tempted to travel to, such as beachside cities in Florida. It’s become especially prevalent in California, where operators have discovered a steady stream of revenue by luring people with addiction from across the country and billing their private insurance. Lawsuits and federal cases allege that rehabs can charge insurance hundreds of thousands of dollars for a few months’ stay, but offer little in the way of treatment.
When the money runs out, they kick the patients out without support or referrals, regardless of whether or not they’ve recovered—a practice known as “patient dumping” or “curbing.”
In court filings, these rehabs generally blame the insurers for trying to get out of paying for legitimate treatment by filing lawsuits. (Read More)