Iowa Settles with Centene for $44.4 Million over Medicaid Overbilling Allegations

  • Iowa AG Tom Miller announced a settlement with managed care company Centene Corp. in connection with allegations that the company, which operated as Iowa Total Care in the state, overbilled Iowa’s Medicaid program for pharmacy benefits and services.
  • According to the AG, Centene allegedly received payments it was not entitled to, falsified reports related to its work under its Medicare provider agreement with the state, misrepresented the cost of pharmacy services, and failed to disclose or pass along retail discounts to the state.
  • Under the terms of the settlement, Centene must pay $44.4 million, to be split between Iowa and the federal Medicaid program. Centene also agreed to comply with the requirements of Iowa’s laws regarding managed care pharmacy benefits and pharmacy services going forward.
  • We have previously reported on Centene’s settlements with other states regarding similar allegations, including, most recently, Oregon.