Centene Corp. settles for $215 million on California Medicaid overbilling accusations

California Department of Justice investigators found that Centene Corp. subsidiaries reported inflated drug costs and fees in providing prescription drugs to patients in Medi-Cal, the state’s Medicaid insurance program, from January 2017 to December 2018. (Getty Images)

Centene Corp. has agreed to pay more than $215 million to California after being accused of overcharging the state for pharmacy services — the biggest payout to date by the nation’s largest Medicaid insurer over its drug pricing practices.

The agreement makes California at least the 17th state, Illinois and Indiana among them, to settle pharmacy billing claims totaling $939 million with the St. Louis insurance giant. Centene reported $144.5 billion in revenue in 2022, up 15% from the previous year.