California health system pays $31.5M to settle drug overbilling case

Water Fountain Valley, Calif.-based Memorial Health Providers has actually agreed to pay $31.5 million for overcharging Californias Medicaid program for prescription drugs, California Attorney general of the United States Xavier Becerra revealed Nov. 2..

” Todays settlement was the result of Memorial Health stepping forward, doing the best thing, and signaling the authorities of this error,” Mr. Becerra stated in a news release. “The cash from the settlement will go back where it belongs — to Californias citizens, particularly low-income households and children who count on Medi-Cal for their healthcare protection.”.

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From December 2016 to May 2019, Memorial Health Services submitted claims to Medi-Cal for outpatient prescription drug compensations that were greater than the actual expense the system paid for the drugs. The health system disclosed the overcharges to the Office of the Inspector General in October 2019..

About $12.6 million of the settlement will go to the federal government and about $18.9 will go to California..