Medical fraud busts reveal part of the story of homelessness in LA

The $2 billion medical fraud bust by federal investigators in California this week lifted the lid on one of the great scandals of the homelessness crisis.Namely: Scam artists have been luring drug addicts to California from around the country to attend “rehab” facilities that don’t actually provide treatment.The scammers bill insurance — private or public — until the policies’ coverage runs out.Then they shove the addicts out onto the street.

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By clicking above you agree to the Terms of Use and Privacy Policy.Never miss a story That was one of the horrific and corrupt schemes uncovered this week in the federal raids and indictments.

But it has been going on for many years in California.Already, in 2017, the local media had caught onto the fact that some local rehab centers were exploiting addicts to earn cash, without helping their patients.Obamacare actually made the exploitation easier, because the local marketplace, Covered California, made it easy for people who have just arrived in the state to sign up for insurance.California Post News: Facebook, Instagram, TikTok, X, YouTube, WhatsApp, LinkedInCalifornia Post Sports Facebook, Instagram, TikTok, YouTube, XCalifornia Post Opinion California Post Newsletters: Sign up here!California Post App: Download here!Home delivery: Sign up here!Page Six Hollywood: Sign up here!That turned Southern California into the “Rehab Riviera.” Except there wasn’t a lot of rehab going on.There are other reasons for the shocking rise of homelessness.And plenty of addicts have hit the streets in California without going through a phony rehab program first.But the fact that this phenomenon has continued — almost in the open — for a decade or more is a disgrace.It points to the problem of a large welfare state.

California creates extremely generous benefits, so ...