Online Pharmacy Start-up Settles with AG Bonta for $15 Million over Alleged Medi-Cal Fraud

  • California AG Rob Bonta settled with Hey Favor, Inc. and affiliated and predecessor entities that previously conducted business as “The Pill Club” for allegedly violating the California False Claims Act by knowingly presenting false claims to Medi-Cal—California’s Medicaid program—for prescriptions that were written and dispensed in a manner that failed to comply with California law.
  • According to the settlement, The Pill Club allegedly submitted false claims to Medi-Cal that took advantage of the Affordable Care Act’s essential coverage mandate that guaranteed Medi-Cal beneficiaries access to birth control and contraceptives, by seeking reimbursements for excessive amounts of products that customers never requested, even after the patients asked to stop receiving them, and billing for services that were not rendered.
  • Under the terms of the settlement, The Pill Club is required to pay $15 million to the state, which includes full restitution to Medi-Cal, damages, and civil penalties.