Out-of-state addiction recovery programs are recruiting vulnerable individuals to Los Angeles’ Westside, then abandoning them when their insurance coverage runs out, leaving many homeless and desperate.
When Hailey and Chandler agreed to relocate 2,000 miles from Alabama to California, they believed they were entering a couple’s drug recovery program fully covered by insurance. Instead, less than six months later, they found themselves crying in a McDonald’s parking lot, desperate to return home rather than spend another night on the street.
“We were sold a dream,” Hailey told the Westside Current, which documented their story. “They promised us everything would be taken care of, but once our insurance stopped covering treatment, we were literally put out on the curb.”
This scenario has become increasingly common across Los Angeles’ Westside over the past five years. Residents report noticing clusters of people with Southern license plates and accents walking between addiction recovery centers. More troublingly, neighbors began recognizing familiar faces appearing on local streets after disappearing from treatment houses.
The pattern that emerged was consistent: individuals recruited from out of state for addiction treatment were being left stranded when their insurance benefits expired.
According to addiction treatment experts, insurance coverage for rehabilitation services varies widely. While the Affordable Care Act expanded coverage for substance use disorders, many policies have strict limitations on treatment duration. Medical detox alone can cost between $250 to $800 per day, while inpatient addiction treatment ranges from $5,000 to $80,000 depending on facility type and length of stay.
For those without insurance or whose coverage has expired, options become severely limited. State-funded facilities often have strict qualification requirements and lengthy waiting lists. The American Addiction Centers notes that “due to limited funding and high demand, waiting lists are common for state-funded rehab programs.”
This creates a dangerous gap for out-of-state patients whose insurance benefits end before their recovery is complete. Without local support networks or financial resources to return home, many end up homeless.
The connection between homelessness and addiction is well-documented. According to Recovery.com, of the 653,100 people reporting homelessness on a single night in 2023, nearly 100,000 suffered from chronic substance misuse. The site notes that “addiction can contribute to homelessness” through job loss and relationship breakdown, while “many people become homeless first, then develop substance use issues as a way to cope with trauma and stress.”
For individuals like Hailey and Chandler, this creates a devastating cycle. Brought to California for treatment, they now find themselves stranded without resources, far from their support systems, and at high risk of relapse.
Local residents and advocates are calling for greater oversight of out-of-state recruitment practices by rehabilitation centers and stronger support systems for those who complete treatment programs but lack resources to sustain their recovery or return home.
“These are vulnerable people being exploited,” said one Westside resident who has witnessed the pattern repeatedly. “They come here seeking help, and instead end up worse off than before.”
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