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The company awarded the state’s Medi-Cal Rx contract was taken over by another company, Centene. That left the state with a contractor it didn’t pick — one that has been accused of overbilling nine states.
Centene, which now runs the program, has been accused of overbilling nine other state Medicaid programs and is now under investigation by California.
Is California getting tougher on health plans that participate in Medi-Cal, the state's insurance program for low-income residents?
In announcing the fines, state agency directors said: “The magnitude of L.A. Care’s violations, which has resulted in harm to its members, requires immediate action.” The health plan has 2.4 million Medi-Cal enrollees.
California regulators issued record fines against L.A. Care, the state’s largest Medi-Cal managed-care plan for providing inadequate care to its enrollees.