BISMARCK, N.D. – Insurance Commissioner Jon Godfread is warning consumers about a rising trend of fraudulent rehabilitation centers preying on vulnerable individuals seeking help for substance use addiction.
Victims are recruited to enter the treatment facilities through in-person visits or social media. Treatment center recruiters have heavily targeted American Indian reservations in many states, including North Dakota.
These scams often disguise themselves as legitimate out-of-state rehab centers or treatment programs. However, their true aim is to bill insurance companies for unnecessary or non-existent treatments, leaving victims without proper care and sometimes with devastating financial consequences. Victims without health insurance have been pressured to purchase a policy through the Healthcare.gov exchange.
“These fraudulent schemes often feature aggressive recruitment tactics and victims receiving misleading or false information about the treatment programs,” said Godfread. “North Dakotans who are battling addiction should know that they are not alone, and reputable resources are available. These fraudulent programs are a cruel exploitation of individuals in some of their most vulnerable moments.”
North Dakotans should take the following precautions when seeking addiction treatment:
- Verify the credentials of any rehab center or treatment provider.
- Be cautious of any facility that makes extraordinary promises, uses high-pressure sales tactics or asks for sensitive personal or insurance information upfront.
- Consult a trusted healthcare provider, therapist, or local support group that can help offer legitimate treatment options.
If a consumer suspects they have been contacted by a fraudulent scheme, they are encouraged to contact the North Dakota Insurance Department at (701) 328-2440 or by visiting Insurance.ND.gov.