The Protecting Patients from Rehab Fraud Act of 2025 directs the Department of Justice and the Government Accountability Office to investigate fraud and illegal practices in the drug addiction treatment industry within one year of enactment. The Attorney General's report must examine illegal recruitment tactics, insurance fraud schemes, patient dumping (abandoning patients once insurance stops paying), drug trafficking within facilities, and resulting homelessness and relapse rates, while the GAO must assess federal and state efforts to prevent insurance fraud and evaluate the effectiveness of government spending on rehabilitation facilities. Both agencies must provide Congress with recommendations to combat fraudulent practices and protect vulnerable patients seeking treatment. The bill affects rehabilitation facilities, insurance companies, patients in recovery, and federal oversight agencies responsible for monitoring the industry. No specific funding is allocated in the legislation, as it primarily requires investigative reporting rather than new program expenditures.
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