Centene to pay California $215M in latest overbilling settlement

Centene will pay California $215 million, the largest payment the company has made to settle allegations it overcharged state Medicaid programs. 

Centene has paid at least 14 states to settle allegations it overcharged Medicaid programs for prescription drugs by failing to pass discounted rates on to states.

According to a Feb. 8 news release from the California Attorney General's Office, the settlement recovers twice the value of the alleged inflated drug costs. 

Centene subsidiaries California Health and Wellness and Health Net operate Medicaid contracts in 20 California counties. 

Centene agreed to pay Indiana $66 million to settle overbilling allegations Jan. 31. The St. Louis-based insurer paid settlements to at least seven states in 2022, totaling at least $307.5 million. 

Other states have also settled with Centene, but those states and settlement amounts have not been publicly disclosed, according to Kaiser Health News

According to a 2021 Securities and Exchange Commission report, Centene created a $1.25 billion reserve to pay for the settlements. 



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