PHOENIX — A Prescott lawmaker wants to make it illegal for sober-living homes and similar day-treatment centers to pay people for referrals, a practice he calls an insurance scam.
Rep. Noel Campbell acknowledged that placing limits on referral fees runs contrary to the Republican philosophy of less regulation. In fact, his HB 2333 comes on the heels of the state House voting to remove all limits on how much apartment owners can pay for leads that bring them new tenants.
But Campbell said this is different.
“This is kind of a shady industry,” he said, especially outpatient-treatment programs that bill themselves as able to help people with addiction.
“They have people, brokers or younger kids go out and find other kids that are in distress with drug-addiction problems and they pay them, sometimes up to $5,000, to have this kid brought to them,” Campbell said.
But he said the operators of these facilities aren’t necessarily interested in helping all comers.
“The kid who’s brought to them has to have insurance and money,” he said. “It’s just a way to get at the money on the insurance.”
The measure has some real teeth.
Referrals of more than $1,000 would be a Class 3 felony, with a presumptive prison term of 3½ years for a first-time offense — and a possible eight years and nine months for aggravated violations.
Even a referral of less than $100 would be a Class 6 felony, which carries a presumptive sentence of one year behind bars.
Campbell, who shepherded through legislation last year allowing cities to have some oversight of these sober-living homes and clinics, said the problem is not limited to Arizona. He said Florida already has adopted similar restrictions.
Mary Beth Hrin, who is working with Campbell on the legislation, said there is a reason to impose such restrictions on this industry that do not exist elsewhere.
“These kids they’re bringing in here have no diagnosis” and aren’t being referred by a medical professional, said Hrin, an unsuccessful candidate last year for the Yavapai County Board of Supervisors.
Campbell’s legislation specifically says the ban on referral fees does not apply to nurse registries.
“They’re bringing these kids in based on the fact that they do have insurance,” Hrin said. “They’re coming into the clinics that can’t offer them the standard of care,” as some of these people may need psychiatric care in addition to dealing with their addiction, she said. “These kids become a commodity.”
Campbell acknowledged that if sober-living homes and clinics are not qualified to provide treatment, there is another alternative: new restrictions on their operations. That, however, may be more difficult politically to get approved than a simple ban on referral fees, which Campbell said are not used by everyone in the business.
“The problem with that is that the good clinics are the ones that have asked me to run this bill,” with only “fly-by-nights” opposed, he said. “This industry is stuffed with these people that are out to make a quick buck and move on.”
Theresa Ulmer, who represents the Arizona Recovery Housing Association, said her organization has not yet taken a position on the measure.
