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Centene, accused of overbilling Iowa Medicaid, pays State of Iowa a $44.4 million settlement

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December 15th, 2022 by Ric Hanson

(Radio Iowa) – A managed care company has agreed to pay a 44-point-four million dollar settlement after being accused of submitting excessive prescription drug bills to the Iowa Medicaid program. The Missouri-based insurance company Centene does not admit wrongdoing. A news release from the Iowa Attorney General’s office indicates there were irregularities in the way a pharmacy benefits management company that’s a Centene subsidiary was billing for medications provided to Iowa Medicaid patients. Centene operates under the name Iowa Total Care in Iowa. It’s one of three private companies that oversee care and billing for 800-thousand Iowans who are enrolled in the government’s Medicaid program.

Senator Pam Jochum, a Democrat from Dubuque, says the huge settlement is a sign Centene defrauded the state and a stark reminder the privatization of Iowa Medicaid isn’t working.

Attorney General Tom Miller’s office has announced a series of legal settlements for Iowa and other states in the last month, regarding allegations about the marketing of opioids. “There’s going to be considerable money coming into Iowa and all the states to deal with opioids and that’s really important,” Miller says. In late November, Miller announced opioid makers Teva  and Allergan would pay the State of Iowa a 46-point-six MILLION dollar settlement.

Miller and his top deputy were the lead negotiators for all states in that case — and the national settlement from these two companies is six-point-six BILLION. Miller, a Democrat who has served as Iowa’s attorney general for 40 years, lost his bid for an 11th term. Republican Brenna Bird’s term as attorney general begins in January.