CLAYTON — Clayton-based health insurer Centene has reached a $44 million settlement agreement to resolve claims that one of its subsidiaries overcharged Iowa’s Medicaid program for pharmacy benefits management services.
Iowa is at least the 15th state to reach such an agreement, according to press releases from states’ attorneys general, settlement documents and news reports.
Under the terms of the agreement in Iowa, Centene denied wrongdoing.
A Centene spokesperson said in a statement Wednesday that the company respects its relationships with its state partners.
“This no-fault agreement reflects the significance we place on addressing their concerns and our ongoing commitment to making the delivery of healthcare local, simple and transparent,” the statement said.
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Ohio and Mississippi were the first states to publicly announce settlement agreements with Centene last year over issues with pharmacy benefits management services.
The Ohio Department of Medicaid and state Attorney General David Yost had filed suit against Centene and its subsidiary Buckeye Health Plan, alleging the companies used opaque billing practices that resulted in overpayments by the state Medicaid program. In June, Centene reached a no-fault agreement with Ohio and agreed to pay $88 million to the state.
At the same time, the company also announced a $55 million no-fault agreement with the state of Mississippi, where the state auditor had been investigating a different Centene subsidiary.
The company denied liability in both cases.
Centene disclosed, at the time, that it was in discussion with a group of other plaintiffs, and had reserved an additional $1.1 billion for potential cases.
Iowa’s Attorney General, Tom Miller, reviewed Centene’s operations after the string of settlements in other states, according to a press release.
Centene operates as Iowa Total Care in the state. Iowa Total Care administered pharmacy benefits management services through its subsidiary, Envolve.
Miller’s office alleged that Envolve misrepresented costs of pharmacy services, and failed to pass on retail discounts to the state.