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Now Law: Armato, Murphy & Vainieri Huttle Bill to Deter Substance Use Disorder Treatment Centers from Patient Brokering

With the opioid crisis surging, legislators, insurers and health care providers have all been taking meaningful steps to better connect victims with treatment services. Previous law, however, left opportunity for fraud whereby profit-seeking individuals exploited numerous people with substance use disorders and private insurers. Working to combat the problem, legislation sponsored by Assembly Democrats John Armato, Carol Murphy and Valerie Vainieri Huttle was signed into law Monday.

Under the law (formerly bill A-2280), a person will be guilty of a crime of the fourth degree if they make or receive a payment or otherwise furnish/receive any fee, commission or rebate to any person in connection with the referral of patients to a facility.

“There are people quite literally getting paid, by-the-bed, to fill substance use disorder treatment centers across the country. These people posing as recruiters are using bribery, promising gifts, money, all-expense-paid travel, food and even drugs to potential patients,” said Assemblyman Armato (D-Atlantic). “It’s an unethical, sophisticated scam that cannot continue. Substance use disorder victims and their families are suffering the most. This law takes corrective action in helping prevent New Jersey residents from falling victim to the tactics of these bad actors.”

The penalties stipulated in the law, as enforced by the Department of Human Services, specifically serve to target payments that vary based on the number of patients referred; the duration, level, volume, or nature of substance use disorder treatment services provided; or the amount paid by health carriers to treatment facilities for services.

“I find it highly concerning that there are people out there making a profit off those who have a substance use disorder,” said Assemblywoman Murphy (D-Burlington). “Not only are these brokers simply out to make money rather than help struggling members of the community, but they are knowingly sending people to facilities with very little – if any – real treatment. This practice is harmful to their recovery process and may leave them feeling as if no one can help them.”

“Nothing about our country’s opioid crisis has an easy solution, yet these selfish ‘body brokers’ and treatment centers only complicate our efforts even further,” said Assemblywoman Vainieri Huttle (D-Bergen). “By acting only in their own self-interest, they are hurting vulnerable people who need a helping hand. This law will help end this fraudulent practice and get our residents struggling with substance use disorders the assistance they need.”

The act takes effect immediately.