New Jersey lawmakers are cracking down on deceptive practices in the substance use treatment industry with the advancement of two bills aimed at increasing oversight and regulating patient referrals. This comes in response to a 2024 report that uncovered fraud, unethical conduct, and deception within the industry. The bills, sponsored by Sen. Joseph Vitale, would require treatment providers to provide accurate information in their marketing materials and ban deceptive marketing practices.
The legislation aims to prevent practices like “body brokering,” where recovery coaches are paid to refer clients with insurance coverage, as well as misleading statements about treatment programs. Violations could result in fines of up to $20,000. A second bill would increase criminal penalties for individuals involved in patient referrals, with a $50,000 fine for violators.
Advocates like Elissa Tierney, who has firsthand experience with deceptive marketers, support the bills as a way to ensure that individuals seeking treatment receive legitimate help. Both bills have passed the Senate Health, Human Services, and Senior Citizens Committee and are awaiting further action in the Assembly.
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