A provision of insurance reimbursement that is made directly to patients, specifically for substance abuse treatment, continues to be scrutinized, as some say the practice can lead to relapse.
While some states have created laws stopping such payments, California is not one of them.
The issue occurs when patients see a provider outside of their insurer’s network, commonly referred to as out-of-network coverage. Because no contract between the insurer and service provider exists in such cases, reimbursements for services are sometimes made to patients directly.
The method of such checks is known as “pay to patient.” In the substance use treatment industry, such direct payments have been criticized, with some saying it may lead to relapse for patients….