Committee backs bill to ensure direct payment to substance‑use treatment providers
SB 2425 was advanced with amendments designed to require that payments go to providers (not patients) in certain substance‑use treatment contexts; proponents said insurer practices create relapse risk when reimbursements are sent to patients days or weeks after discharge.
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Advocates for substance‑use disorder treatment told the committee that insurer refusal to honor provider assignments creates serious patient and provider harms. Elliot Smith, CEO of the Ohana Addiction Treatment Center, described instances when tens‑of‑thousands of dollars were sent to former patients rather than to providers, creating relapse risk and administrative obstacles for families trying to secure care.
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