#37 Can Tech Solve America’s Drug Crisis?

Fraud Reduction

David Sarabia emphasizes the rampant fraud in the treatment industry, which he describes as "disgusting." He believes blockchain technology can create an audit trail, providing transparency and accountability for insurance payments 1. This would help legitimate treatment centers thrive while exposing fraudulent ones 2.

We want to create an audit trail for the treatment industry where insurance can then say, what are we paying for, really?

--- David Sarabia

David is confident that ethical centers will adopt this technology, while fraudulent ones will avoid it due to increased scrutiny 2.

   

Insurance

Blockchain's role in addiction treatment extends to insurance practices. David explains that insurance companies are currently refusing to pay due to fraud concerns, making blockchain a preemptive move for treatment centers 1. This technology aims to provide real insight into the $39 billion industry, ensuring that insurance payments are justified and transparent.

All the fraud concerns, what's happening now is that insurance companies are just not paying.

--- David Sarabia

Long-term success will require insurance company buy-in, but the initial focus is on establishing the technology's credibility 1.