Oklahoma Residents Lured to Out-of-State Treatment Centers

In Oklahoma, some recruiters are targeting individuals struggling with addiction on the streets, offering them free treatment and housing options in Southern California.

One recruiter pointed out that having a proper insurance policy could be incredibly valuable, possibly worth tens of thousands of dollars.

“Whether you want to change lives or just escape to California for a few months, it’s all right here,” a recruiter mentioned to someone named Derek Dunn back in 2022.

Dunn took the bait, and he wasn’t alone. Over 880 Oklahomans were lured by treatment facilities in California and Arizona from 2020 to 2025. The federal government is looking into the scheme, which allegedly cost about $46 million in improper payments by Oklahoma’s Blue Cross and Blue Shield.

Patients noticed that many of the treatment centers seemed to specifically attract Oklahomans. Russell Andrews, who attended a facility named in the lawsuit, remarked, “They joked about calling it Oklahomie since 90% of us were from Oklahoma.”

Oklahoma Watch interviewed nine former patients, many of whom reported spending time in at least 12 facilities, predominantly serving Oklahomans.

The insurers accused recruiters of collaborating with insurance agents who misrepresented their income to qualify for coverage, enabling them to obtain policies that would cover out-of-state treatments.

Once these individuals secured insurance, recruiters facilitated their travel to treatment centers, assuring them that insurance would cover everything from flights to housing. Allegedly, recruiters earned fees for each new patient they referred.

Oklahoma’s Blue Cross and Blue Shield declined to comment on the situation, and the treatment provider named in the lawsuit also remained silent.

Some facilities have come under fire for providing minimal treatment. Jeff Rogers, an Oklahoma native who sought help in California, expressed gratitude for the care he received. “Honestly, I feel lucky to have gotten help when I did,” he said.

But it seems that not all facilities offered the same level of care. There were reports of places treating clients merely as sources of income, leading to hundreds of thousands of dollars in revenue while offering little therapeutic support.

In response to the situation, Oklahoma Blue Cross and Blue Shield announced that starting January 1, individual plans would no longer cover out-of-state care, except in bordering counties. This change poses a challenge for individuals seeking necessary treatment.

Titus Carey from Hope Is Alive noted that without access to out-of-state care, many Oklahomans might miss out on essential assistance. In fact, about 145,000 Oklahomans receive some form of substance abuse treatment annually, while nearly 500,000 more need help but do not get it.

While some facilities in California are reputable, changes in insurance policies have left people like Amber Handley searching for options. Handley, who has been in treatment for over a year in California, shared her experience of struggling to remain sober in an environment that often felt enabling.

She reflected on her time in treatment, admitting, “It wasn’t long before we were getting into trouble again.” Now, however, she’s in a better place, working in the recovery field and acknowledging she wouldn’t have made it without the support she found in California.