California Court Issues Evidentiary Ruling in EKRA Criminal Prosecution
A federal district court in California ruled on evidentiary and testimonial issues in United States v. Simons, a criminal prosecution under the Eliminating Kickbacks in Recovery Act (EKRA). The May 1, 2026 decision provides early judicial guidance on how courts will handle evidence in EKRA cases as enforcement expands beyond substance use disorder treatment facilities. EKRA prohibits kickbacks for patient referrals to recovery homes and clinical treatment facilities. The ruling affects Medicaid managed care organizations that contract with behavioral health providers, substance use disorder treatment networks, and recovery services, as EKRA enforcement increasingly targets referral arrangements in these settings.
MCOs contracting with behavioral health and substance use disorder providers face heightened scrutiny of patient referral arrangements and compensation structures under expanding EKRA enforcement, requiring review of network provider agreements and compliance protocols.
Behavioral Health · Managed Care
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