Kentucky's Drug Treatment Expansion Under Beshear Leads to Fraud and Abuse
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Insights by Echo AI
Gov. Andy Beshear loosened Medicaid spending controls in 2020 to expand drug treatment access in Kentucky, leading to a surge in treatment slots. However, this move also resulted in widespread fraud and abuse, with providers billing for subpar care and leading to worse outcomes. The largest provider, Addiction Recovery Care (ARC), was accused of Medicaid fraud, and the company's founder was indicted for wire fraud and money laundering. Despite warnings from experts and insurers, Beshear's administration did little to rein in spending until Republicans passed a bill requiring prior approval for treatment services in 2025.
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