Statewide 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.
A spokesperson for Centene says the settlement reflects the significance the company places addressing concerns and Centene will continue to deliver high-quality outcomes for Iowa Medicaid members.
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.
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 dollars.
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.
