Sovereign Health Group Blog

Bullying tactics of Health Net pushes addiction rehab center to closure

Bullying tactics of Health Net pushes addiction rehab center to closure

Insurance giant Health Net’s hegemony and illogical refusals to pay the patients’ genuine insurance claims for the past two years have pushed Insight Treatment Center, an addiction treatment center, to the verge of shutting down. The center has been offering services relentlessly in the field of addiction treatment and recovery for the past 25 years.

Bullying treatment centers by refusing to pay legitimate insurance claims of patients is a common trend observed among many insurance companies. Leading the charge is Health Net, which has rubbed several addiction rehabs the wrong way.

The anomalies in Health Net operations are so rampant that it prompted the U.S. civil rights office to open an investigation into alleged Health Insurance Portability and Accountability Act of 1996 (HIPAA) violations by the company. For years now, there have been accusations against Health Net of obstructing justice by using “scorched earth” litigation tactics. It tries to subjugate every effort by opponents in the legal arena. Health Net launched a scathing war in 2015 against every out-of-network substance abuse treatment facility in five states owing to its vested interests.

No wonder, the Department of Health and Human Services has already listed Health Net on its “Wall of Shame,” for a litany of dodgy acts by the company. Not only these, there are plenty of other derisive incidents that have smeared the reputation of the company such as:

  • In 2009, Connecticut Attorney General (now U.S. Senator) Richard Blumenthal sued Health Net’s northeast division for misplacing vital protected information, including social security numbers, bank account numbers, and health information, for the past and present Connecticut enrollees. Health Net had to consent to pay a fine of $250,000 and a corrective action plan for the debacle.
  • Health Net reprised this act again, this time antagonizing the State of Vermont. It had to enter into a settlement with the state for misplacing a hard drive on May 14, 2009, that contained protected health information, social security numbers and financial information of approximately 1.5 million people, including 525 Vermonters.
  • The Addiction Treatment Advocacy Coalition had filed a complaint against Health Net in 2016, signed by more than 100 facilities suffering at the hands of the insurance company in the form of dragnet audit. The California Department of Insurance (“DOI”) is about to complete an investigation into it.

Patient’s lives put in quandary

A disturbing trend that has emerged in recent times is the fact that several treatment facilities in the U.S. are facing the ire of cities that are intolerant to these treatment centers in their neighborhood. The duel between the states and treatment centers has turned ugly with legal suits being filed by both the parties.

Even Sovereign Health, a conglomerate of quality addiction treatment and behavioral health service facilities, is involved in a similar legal battle in San Clemente with Health Net because of which a series of federal raids were conducted on its treatment centers in June 2017. The raids followed a suit against Health Net by Sovereign Health for refusing to pay claims to its patients.

Patients receiving treatment for psychological problems are already vulnerable and those undergoing addiction treatment need unflinching support and care from their rehabs. However, when such raids happen on treatment facilities, the inmates are left shell-shocked and petrified to the core.

Dealing with addiction

Treatment is the only solution for any substance abuse disorder. Irrespective of the apparently motivated federal raids,  Sovereign Health remains committed to fighting the burgeoning drug menace that has been bothering America for decades. We continue to offer uninterrupted services to our patients battling addiction, mental disorders or dual diagnosis.

If you have a loved one struggling with an addiction, call the 24/7 helpline of Sovereign Health or chat online for immediate assistance. Whether it is opioid or heroin addiction treatment you are looking for or any other craving, help is just a call away. Our heroin treatment centers are among the best in the country.

We accept Most Private Insurance, reach out to us so we can help!

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