Health Net Federal Services, which Centene acquired in 2016, contracts with the Defense Department to administer health benefits under Tricare, which provides coverage to military members and their families.
The settlement resolves allegations that Health Net falsely certified its compliance with certain cybersecurity requirements in annual reports to the Defense Health Agency between 2015 and 2018, according to a Feb. 18 news release from the Justice Department. Officials alleged Health Net failed to scan for vulnerabilities in its networks and remedy security flaws as required by its contract.
There was no determination of liability as part of the settlement, and the claims against Health Net and Centene are allegations only, according to the release.
“For more than 35 years, [Health Net Federal Services] has faithfully supported servicemembers and their families in the administration of Tricare throughout the country, and protecting servicemember health information has been paramount,” a spokesperson for Health Net Federal Services said in a statement shared with Becker’s. “While we deny the allegations made and note that no breach or loss of service member data occurred in this matter, we are pleased to bring a resolution to this dispute.”
