Patient brokering is when someone is paid for steering your loved one into a treatment program, sober home or lab. Paying or taking that kind of kickback can be a federal crime.1 The clearest warning signs are free travel, free rent or cash to enroll, and a “helpline” that won’t name the program. Decline, verify on your own, and report it.
A broker gets paid when your loved one is admitted, not when they get better. That can mean the wrong care, far from home, that ends when the insurance does. If you’re choosing a program right now, start with sources that aren’t paid to refer anyone. It is one of our guides to choosing a program you can trust.
What is patient brokering?
It’s paying or being paid to deliver a person to a provider. The broker may be a call center, a marketer, a sober home operator, a so-called interventionist or a recruiter. Brokers are usually paid per person, so your loved one’s needs come second.
It often follows a pattern:
- The contact. A search ad, a “free helpline,” a social media message or someone at a meeting offers help getting into treatment fast.
- The perk. A free flight, free or cheap housing, cash, a phone or gift cards, offered on the condition that your loved one goes to a specific place.
- The billing. The program bills the insurance, sometimes for services that weren’t needed or never happened.2
- The move. When coverage runs out, your loved one may be discharged or moved to a sober home tied to another program, and the cycle can start again.
Is patient brokering illegal?
Yes, in many cases. The Eliminating Kickbacks in Recovery Act (EKRA), passed in 2018, makes it a federal crime to knowingly and willfully:1
- Ask for or accept anything of value for referring a patient to a recovery home, clinical treatment facility or laboratory
- Pay or offer anything of value to get that referral
- Pay or offer anything of value in exchange for a person using that facility’s services
Each occurrence can bring a fine of up to $200,000, up to 10 years in prison, or both.1 The law covers services paid for by a “health care benefit program,” a term it takes from 18 U.S.C. § 24(b), which covers any public or private health plan, so private insurance counts as well as government programs.1 The law has narrow exceptions, so courts decide whether a specific payment is illegal. Your job is to say no and report what you saw. State laws may also apply, and they vary.
How common is addiction treatment fraud?
It shows up in the biggest federal health care fraud cases. In its 2025 National Health Care Fraud Takedown, announced June 30, 2025, the Justice Department charged 324 defendants in schemes involving more than $14.6 billion in intended losses.2 That total covers all kinds of health care fraud, not only addiction treatment.
In one case, prosecutors allege that a billing company owner conspired with treatment center owners to bill Arizona’s Medicaid program about $650 million for substance use treatment.2 Some services were allegedly never provided or were so poor they served no treatment purpose. Treatment center owners allegedly paid kickbacks for patients recruited from the homeless population and Native American reservations.2 These are charges, not convictions.
What are the warning signs of patient brokering?
Brokering usually looks like generosity or speed. Watch for these three versions.
Free travel to a program far away
A recruiter offers a plane ticket to a program in another state, often for the same day. Distance cuts your loved one off from family. If the stay ends suddenly, they can be stranded.
Sober homes tied to one program (“body brokering”)
Free or cheap rent depends on attending a particular outpatient program. Residents may be moved from house to house or program to program. Watch insurance statements for frequent, expensive lab tests you can’t explain; EKRA covers kickbacks for lab referrals as well.1 Our guide to vetting a sober living home covers what a well-run recovery residence looks like.
“Helplines” that sell your call
The FTC warns that some businesses advertise under real treatment centers’ names but list their own contact information.3 In June 2025, it sued a marketing group it says did this to route callers to its own clinics; these are allegations, not court findings.4 The full list of warning signs in a program’s pitch is on our red flags page.
Is this offer a brokering warning sign?
InteractiveHas anyone offered something of value to enroll, such as free travel, free housing, cash, gift cards or a phone?
See possible outcomes
- Treat this as a brokering red flag Perks tied to enrolling suggest someone is paid per patient. Decline, don’t share insurance details, and find a program from a neutral source.
- You may be talking to a marketer A real program tells you who it is. Look it up yourself before sharing anything.
- This matches the body-brokering pattern Housing should not depend on attending one program. Get the terms in writing and check both separately.
- Verify before you agree No brokering signs yet, but check the license and call your insurance plan yourself.
- No brokering signs so far Keep going, and ask the program your questions before admission.
What should we ask to spot a broker?
Ask directly how they’re paid. An honest referral source answers plainly. A broker dodges or rushes you.
Questions that bring brokering into the open
“Can you just get him in somewhere tonight?”
“Before we go on, are you paid by any program when someone you refer is admitted?”
“The flight’s free? That’s great.”
“Who is paying for the flight, and does my son have to attend a specific program to get it?”
“Okay, she’ll move into the house this week.”
“Is the housing conditional on attending one particular program? Please send the terms in writing.”
“Which place do you recommend?”
“What assessment is that recommendation based on, and what other programs did you consider?”
Sam, 24, met a man at a meeting who offered him a free bed in a sober house two states away and a plane ticket, as long as he joined a certain outpatient program. Sam’s mother asked who paid for the ticket and why the house depended on that program. The man stopped answering. She found an in-network program near home through her insurance plan instead and reported the offer to her state attorney general.
What should we do if we suspect brokering?
Don’t accept the perk, protect your information, and find care through a neutral source. Then report what happened.
- Say no to anything offered for enrolling. Medicare advises people not to accept offers of money or gifts for free medical care.6
- Don’t give insurance or Social Security numbers to anyone who won’t name the facility.
- Find a program yourself. FindTreatment.gov lists facilities that are licensed, certified or approved by their state, though a listing isn’t an endorsement.8 The SAMHSA National Helpline, 1-800-662-4357, is a free, confidential referral service open 24/7.9 Then check the program’s state license.
- Save the evidence before you report (checklist below).
- Read every insurance statement for services, dates or lab tests that don’t match what happened.6
Leaving suddenly can be dangerous. Never stop alcohol or benzodiazepines suddenly without medical advice. Ask a clinician about withdrawal risk before any move, and line up a verified program first. If your loved one is stranded and in danger, call 911. For a suicidal or mental health crisis, call or text 988. See what to do in an emergency, including overdose.
Where do we report patient brokering?
Report it to the agency that matches what happened. You can report to more than one.
| What happened | Where to report |
|---|---|
| A deceptive ad or fake helpline | FTC at ReportFraud.ftc.gov3 |
| A program or sober home acting improperly or without a license | Your state substance use agency, listed on FindTreatment.gov78 |
| Medicare or Medicaid was billed | HHS Office of Inspector General, 1-800-HHS-TIPS (1-800-447-8477)5 |
| Original Medicare was billed | 1-800-MEDICARE (1-800-633-4227)56 |
| A Marketplace plan was billed | Health Insurance Marketplace, 1-800-318-25965 |
| A Medicare Advantage plan was billed | Your plan’s fraud-reporting contact5 |
| Private insurance was billed | The fraud number on your insurer’s website or member card |
| Kickbacks or other crimes | Your state attorney general |
Someone held against their will or in danger is a police matter. Call 911.
Before you report: what to save
- Who
- What was offered
- What was billed
Common misconceptions
If the flight or the rent is free, nobody is paying.
Tap to see the factsSomeone is paying. Ask who funds it and why. Paying anything of value for someone to use a facility’s services can be a federal crime.1
Brokering only matters with government insurance.
Tap to see the factsEKRA covers services paid for by private insurance as well as public programs.1
Frequently asked questions
Is every referral service or interventionist a broker?
No. Doctors, insurance plans and public helplines refer people without being paid by the program. The question is who pays the person helping you. An interventionist you pay directly is different from one paid by the program they recommend. Read what to ask before hiring an interventionist.
Is a program "scholarship" a warning sign?
Not by itself; some legitimate programs offer reduced-cost beds. Get the terms in writing, and be cautious when one comes bundled with free travel or housing.
What if my adult child doesn't want to leave a sober home we think is brokering?
They’re an adult, so you can’t force a move. Share what you found calmly, offer a verified alternative, and report your concerns to your state’s substance use agency.78 Keep the conversation going, and use ways to raise it without a fight.
Sources
- 18 U.S.C. § 220 — Illegal remunerations for referrals to recovery homes, clinical treatment facilities, and laboratories (Eliminating Kickbacks in Recovery Act, 2018). uscode.house.gov/view.xhtml?req=%28title%3A18+section%3A220+edition%3A… — accessed Oct 2026
- U.S. Department of Justice, via CMS Newsroom — National Health Care Fraud Takedown Results in 324 Defendants Charged in Connection with Over $14.6 Billion in Alleged Fraud (June 30, 2025). cms.gov/newsroom/press-releases/national-health-care-fraud-takedown-re… — accessed Oct 2026
- Federal Trade Commission — How to avoid scams when looking for drug treatment (August 2025). consumer.ftc.gov/consumer-alerts/2025/08/how-avoid-scams-when-looking-… — accessed Oct 2026
- Federal Trade Commission — FTC Sues to Stop Mercury Marketing and Others from Deceptively Advertising Substance Use Disorder Treatment Clinics (June 2025). ftc.gov/news-events/news/press-releases/2025/06/ftc-sues-stop-mercury-… — accessed Oct 2026
- Centers for Medicare & Medicaid Services — Reporting Fraud (last modified March 2026). cms.gov/medicare/medicaid-coordination/center-program-integrity/report… — accessed Oct 2026
- Medicare.gov — Reporting Medicare fraud & abuse. medicare.gov/basics/reporting-medicare-fraud-and-abuse — accessed Oct 2026
- SAMHSA, FindTreatment.gov — State Agencies. findtreatment.gov/state-agencies — accessed Oct 2026
- SAMHSA, FindTreatment.gov — Frequently Asked Questions. findtreatment.gov/faqs — accessed Oct 2026
- SAMHSA — National Helpline. samhsa.gov/find-help/helplines/national-helpline — accessed Oct 2026